New President, Now What?

I’ve been pondering what a trump administration will mean for the bankruptcy practice. I’ve come to the conclusion that I really can’t tell.

There doesn’t seem to be any talk about modifications to the Bankruptcy Code so I don’t expect to see anything like the flood of filings we saw leading up to Bankruptcy Abuse Prevention and Consumer Protection Act.

So if no changes in the law, bankruptcy filings will follow along with the economy. If trump manages to spur the massive growth he promised, then filings should fall. If he manages to deport all the undocumented aliens, I expect to see an overall decline int eh economy, meaning more bankruptcy filings. If the housing market turns out to be another bubble and it pops, we’re back in the 2007-2008 market crash all over again and filings will be up. If trump and Congress follow through on their promise to eliminate the CFPB, I expect filings to increase.

Lastly, if trump keeps to his promise to maintain a Federal hiring freeze, the UST is going to be short staffed, meaning less problems for debtors.

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