Year-over-year inflation rates reached the lowest level seen in more than three years. This decline signals to consumers the potential that the post-Covid price spike is fading, and the Federal Reserve could be setting up to cut interest rates in September. In a report from the Labor Department, data shows that consumer prices measured year to year rose 2.9% in July, down from 3% in June. This marks the lowest gain since March 2021, according to an article from AP News. The report from the Labor Department stated that nearly all of the inflation seen in July was from higher rental prices and other increased housing costs. The Department also declared that this trend is easing as well. As inflation falls closer to the Federal Reserve’s target rate of 2%, economists are feeling more confident in the direction the rate is moving as well as with the pace at which…
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Bankruptcies under Subchapter V of Chapter 11 soared to a record high of filings in a single day as the debt limit of $7 million was reverted back to $3 million, with 91 filings on June 20, exceeding the typical volume of eight to 10 filings in a typical business day. Originally intended to last only one year, the higher limit was extended twice, with filings surging both times as the deadline approached. The law introducing Subchapter V went into effect in 2020, with the goal of making Chapter 11 bankruptcies faster and less expensive for small businesses by eliminating the need for disclosure statements and creditors’ committees. The Subchapter also removes the absolute priority rule that mandates priority claims to be fully repaid before the lower-ranking claims receive recoveries. In a report from Law360, Jonathan Grasso of YVS Law LLC represented Julian’s Recipe, a packaged, frozen baked goods company…
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Despite recent positive data regarding consumer confidence, LegalShield saw a concerning rise in financial constraints in the December Consumer Stress Legal Index (CSLI). The result was a peak in consumers seeking out bankruptcy help and other legal assistance. The data for the index draws from more than 35 million legal service requests and is forecasting a dip in the previously optimistic consumer confidence. This trend of consumers seeking help filing for bankruptcy showed a disproportionate impact on younger generations and reflects a potential credit crisis. A report from Newsweek stated that this is reflected in the broader U.S. economy, as household debt rose 1.3% in the third quarter of 2023. The Federal Reserve Bank of New York attributes this to increases in mortgages, auto loans, credit cards and student loan balances. As consumers take on more debt, they are beginning to look into options to relieve this financial burden. LegalShield…
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