Crystall Ball – Predictions about Bankruptcy Mediation with Sylvia Mayer
Watch on YouTube: https://youtu.be/pHW2J-4YXdk
Sylvia Mayer of https://smayerlaw.com/ joins Mac Pierre-Louis and Natalia Olowska-Czajka of https://olowskapierre.com/ to look into the crystal ball and predict the direction of bankruptcy mediation in 2022.
Mediation is used in bankruptcy cases in a variety of contexts, including disputed claims, challenges to discharge, avoidance actions, cash collateral and DIP financing, plan terms, contract disputes, fiduciary duty challenges, and more.
Bankruptcy cases fall into two broad categories: consumer (primarily chapters 7 and 13 bankruptcy cases) or commercial (primarily chapters 7 and 11 cases). Sylvia explores the factors that may contribute to the increase or decrease in consumer and commercial bankruptcy filings such as rising interest rates, supply chain challenges, increase in medical debt, access to credit markets, and pace of foreclosures.
Some relevant statistics to consider include: 12,461 Chapter 7 bankruptcies were filed in Texas in 2021 compared to 15,474 in 2020 and 17,387 in 2019. 828 Chapter 11 bankruptcies were filed in Texas in 2021 compared to 1,841 in 2020 and 773 in 2019. 1 in 10 Americans owe medical debt Nearly 40% of small businesses in the U.S. intend to raise prices by 10% or more in 2022. 65% of loan professionals believe that bankruptcy filings will increase in 2022 In 2021, only 8 public companies with more than $300 million in assets filed for bankruptcy. The last year with so few filings was 1987. Three jurisdictions handled 2/3 of the large chapter 11 cases filed in 2021 – Delaware (24), Southern District of New York (12), and Southern District of Texas (17).
Keep in mind that “predictions” is another word for speculation. No one knows what the future holds and these predictions should not be relied upon as statements of fact.