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Down the Rabbit Hole: Bankruptcy Practice In Uncertain Times

By Scott Williams
May 31, 2025

The world — and particularly the U.S. economy — is navigating unprecedented and turbulent times. For bankruptcy professionals, it may feel as though we’ve fallen down Alice’s rabbit hole, where the rules we've long understood and accepted no longer apply. In this new reality, uncertainty defines both the global and American economic landscapes.
For example, the U.S. government has lost its AAA credit rating, leading to spiking Treasury yields. This raises borrowing costs at a time of record federal deficits. Compounding the issue, China — one of the largest holders of U.S. debt — is now engaged in an escalating trade war with no clear resolution in sight.

Tariffs have been levied on almost every major trading partner, particularly China. These actions are disrupting global supply chains and prompting corporate responses to the uncertainty surrounding the availability of goods. Economists report that the U.S. is now experiencing the highest levels of trade and economic uncertainty since 1901.

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