Issue 2 | July 2026

This year, as the United States commemorates 250 years of independence, we invite you to take a step back in time and explore the fascinating history of bankruptcy law in America—from its constitutional roots to the modern system we know today.

The U.S. Constitution gave Congress the authority to establish a uniform bankruptcy system, but creating one that lasted took nearly a century. Congress enacted bankruptcy laws in 1800, 1841, and 1867, but each was eventually repealed after proving unpopular.

A lasting framework finally emerged with the Bankruptcy Act of 1898. This landmark legislation established a permanent federal bankruptcy system, designated U.S. district courts as courts of bankruptcy with original jurisdiction over bankruptcy cases, and gave the U.S. Supreme Court and U.S. circuit courts of appeals authority to hear bankruptcy appeals.

The 1898 Act also created the position of referee in bankruptcy, a court-appointed official responsible for handling many day-to-day bankruptcy matters under the oversight of a district judge. This structure served as the foundation of the federal bankruptcy system for decades and remained largely unchanged until Congress enacted a comprehensive overhaul of the bankruptcy laws with the Bankruptcy Reform Act of 1978.

For those interested, Todd J. Zywicki’s article “The Past, Present and Future of Bankruptcy Law in America” provides a thoughtful, more detailed history.

The Federal Judiciary Center provides a thorough historical timeline entitled “The Evolution of U.S. Bankruptcy Laws.”

For a dive deeper into the modern era of bankruptcy law, the National Bankruptcy Archives (NBA) offers an impressive collection of documents, records, and historical materials. Established in 2000 through a partnership between the Biddle Law Library and the American College of Bankruptcy, the NBA serves as the nation's premier repository for the history of bankruptcy law and debtor-creditor relations. The collection includes more than 1,000 linear feet of personal papers, organizational records, oral histories, photographs, publications, and legislative materials spanning from 1948 to the present. With particular strength in post-1978 Bankruptcy Code materials, the Archives preserve the contributions of many of the individuals and organizations that have shaped modern bankruptcy law, making it an invaluable resource for researchers, practitioners, and historians alike. Explore the archives HERE.

Additionally, The National Bankruptcy Archives' Oral History Collection brings the history of bankruptcy in America to life through firsthand accounts from the judges, practitioners, and leaders who helped shape the field, with many interviews available online alongside full or partial transcripts.

Sincerely,

Wendy A. Owens

Chair, Digital Engagement Committee

Thank you to TrusteSolutions for sponsoring

this issue of Trustee Tribune.

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Current Trends & Cases of Interest

A recent report from S&P Global highlights that corporate financial distress remains elevated in 2026, with bankruptcy activity continuing at historically high levels rather than showing signs of slowing. Through June, S&P Global recorded 372 large U.S. corporate bankruptcy filings, slightly surpassing last year’s pace and marking the highest level since 2010. June filings matched the year’s monthly peak, reinforcing that corporate pressures remain persistent, even as credit markets have shown some resilience—the five-year CDX North American High Yield spread narrowed to approximately 304 basis points by the end of June from its March high of 406 basis points, suggesting investors are not anticipating a widespread default wave at this time.

Supreme Court Cases of Interest

Keathley v. Buddy Ayers Construction, Inc., Case No. 25-6

In a unanimous decision, the Supreme Court held that courts must consider the totality of the circumstances—not just a debtor's knowledge of a claim and potential motive to conceal it—when deciding whether judicial estoppel should bar an undisclosed legal claim in bankruptcy. The Court vacated the Fifth Circuit's decision in Keathley v. Buddy Ayers Construction, Inc., ruling that Thomas Keathley should have the opportunity to show that his failure to disclose a personal injury claim during his Chapter 13 case was an inadvertent mistake rather than an intentional omission. Read More.

FS Credit Opportunities Corp. v. Saba Capital Master Fund, Ltd., Case No. 24-345

In a 6–3 decision, the Supreme Court held that Section 47(b) of the Investment Company Act does not give private parties an implied right to sue for rescission of contracts that allegedly violate the Act. Reversing the Second Circuit, the Court concluded that enforcement of the ICA is primarily the responsibility of the SEC, while the dissent argued that Congress intended to preserve private rescission actions. Read More.

Abouammo v. United States, Case No. 25-5146

In a unanimous decision, the Supreme Court held that prosecutions under 18 U.S.C. § 1519 must be brought in the district where the alleged document falsification occurred, not where the related federal investigation is based. Reversing the Ninth Circuit, the Court ruled that because the crime is the act of falsifying the document itself, venue was proper in Washington, where the document was allegedly created, rather than California. Read More.

Bankruptcy Rulings of Interest

In re Serta Simmons Bedding, LLC, Adv. Pro. No. 23-09001 (S.D. Tex. July 7, 2026), ECF 742 (Serta decision).

In the latest chapter of the Serta Simmons Bedding litigation, the U.S. Bankruptcy Court for the Southern District of Texas awarded non-participating first lien lenders approximately $400 million—including $261.13 million in damages plus prejudgment interest—after finding that participating lenders breached the credit agreement’s pro rata sharing provision in Serta’s 2020 up tier transaction. The Court held that the exchange of new first lien debt constituted a value transfer requiring ratable treatment among lenders, rejected alternative damages theories, and limited liability to each participating lender’s proportional share. The decision highlights the importance of precise drafting of liability management provisions and reinforces that the outcome of future restructuring transactions will depend heavily on the specific language of governing agreements and the forum interpreting them. Read More.

In Reinhardt v. Prince (In re Reinhardt), the Sixth Circuit held that a property tax foreclosure could constitute an avoidable preferential transfer under Section 547(b) of the Bankruptcy Code, with broader implications for preference litigation involving the timing of transfers and the “more than” recovery test. Read More.

June & July 2026 Bankruptcy Filings

GRUPO ANTOLIN-RYA, S.A.U. Southern District of New York, Case 26-11713

Spanish auto parts manufacturer Grupo Antolin has filed for Chapter 15 bankruptcy protection in the United States to support its ongoing insolvency proceedings in Spain as part of a global restructuring effort.

Cash Call, Inc., Southern District of California, Case 3:26-BK-03102

CashCall, Inc., a La Jolla, CA-based consumer finance company providing unsecured personal loans and mortgages, filed for Chapter 11 protection on Jul. 20 in the U.S. Bankruptcy Court for the Southern District of California.

Up Close with Darcy D. Williamson

For this issue, we are featuring Conference Planning Chair—Chapter 7 Track and Trustee Bootcamp Strategist, Darcy Williamson. Darcy has held many positions since joining NABT in 1988 including serving as a Board Member and Tax Committee Chair. Since 1985, Darcy has served as a Chapter 7 Trustee Panel for the District of Kansas. For the past 33 years, she has served as an Adjunct Professor at Washburn University, teaching Bankruptcy and Collections in the paralegal program. She has also authored Bankruptcy and Collections, A Paralegal Perspective in association with the National Federation of Paralegals Association. Darcy is a member of the Kansas Bar Association and is a Past President of the Insolvency Section of the KBA. She is a member of the Topeka Bar Association, the Wichita Bar Association and the Topeka Area Bankruptcy Counsel. Darcy helped author the trustee section of the Kansas Bankruptcy Handbook, Third Edition and Fourth Edition, 2009 & 2017.

Watch the video to learn more about Darcy’s involvement with the Conference Planning Committee and Trustee Bootcamp.

Up Close with Darcy D. Williamson

Website & Membership Tips

Did You Know?

The NABT Community's Discussion Groups (AKA Listservs) are a valuable member resource with a wide range of practical uses. After logging into your member portal, you can post questions to the entire membership or to the specific committees in which you participate. The Listserv also features a searchable archive of past discussions, making it easy to find guidance on topics such as asset sales, locating assets, debtor issues, sample motions, and many other trustee-related matters.

We are grateful to our members who generously share your knowledge and experience by responding to questions and supporting their fellow trustees. Their willingness to collaborate makes the Discussion Groups an invaluable resource for the entire NABT community.

Visit Community Discussion Groups

See Your Discussion Groups

To see all the discussion groups you can participate in, click "NABT Groups" from the top menu, then click "My Groups" from the dropdown list.

Post New Messages

To post a message, find the group you want to post in, click the "Discussions" tab, then click the "Post New Message" button on the right.

ABTJ Vol. 42 Issue 1

Have you read the latest issue of the American Bankruptcy Trustee Journal? Access your electronic copy in the NABT Community below. This issue focuses on the impact of AI in the bankruptcy practice, including a guide to responsible AI use, and how to catch AI hallucinations. Also in this issue: an update on the long-awaited Chapter 7 Trustee fee boost, recent case summaries, member news, and more!

Read ABTJ 42-1 Here

You will be prompted to login to the NABT Community upon clicking this link.

Kudos

Celebrating our members' achievements, big & small!

This month, we give our thanks and a tremendous amount of appreciation to our Conference Planning Co-Chairs, Darcy Williamson (Chapter 7 Track), Ryan Richmond (Subchapter V Track), Carleen Cignetto (Trustee Assistants Track) and their respective committees for all their hard work to bring to fruition our upcoming conference.

Do you have any exciting industry news? Hit any career milestones? Let us celebrate your achievements in the next issue of the Trustee Tribune! Email us at trusteetribune@nabt.com.

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Upcoming Events

We're less than two weeks away from the NABT 2026 Annual Conference! It's not too late to join us August 9–11 at the Westin Boston Seaport District in Boston, MA. The conference will feature three educational tracks offering up to 11 hours of CLE/CPE, along with valuable networking opportunities throughout.