Navigating Today's Legal and Economic Shifts: Regulation, Tariffs, and Bankruptcy Trends
Cleveland Shareholder Sara Costanzo recently moderated a panel, on which Attorney Andrew Voorhees, Joshua Hasko, Andrew Alper, and Mark Stout recently presented at the National Equipment Finance Association (NEFA) 2025 Fall Conference. In the panel presentation, Regulatory Roots: How Today's Legislation Shapes Tomorrow's Results, they examined the shifting legal and economic landscape, offering timely insights on regulatory changes, tariff pressures, and rising bankruptcy trends.
Below are Sara and Andy’s key takeaways!
One key takeaway for creditors was the evolving role of the Consumer Financial Protection Bureau (CFPB). While recent federal actions, including significant budget cuts, staffing reductions, and suspended operations, suggest a period of deregulation, this shift does not eliminate compliance risk. Instead, creditors should expect increased oversight at the state level, where regulators may step in to fill enforcement gaps. Maintaining strong compliance practices and monitoring state-specific developments will remain critical to mitigating risk.
The presentation also addressed the growing impact of tariffs on the equipment finance industry. Rising costs for imported equipment and parts continue to strain borrowers’ cash flow, increasing the likelihood of payment disruptions and defaults. For creditors, this environment underscores the importance of proactive portfolio monitoring, early borrower engagement, and strategic risk mitigation. Exploring alternative suppliers, reassessing collateral values, and encouraging operational flexibility can help preserve asset performance in a volatile pricing environment.
Finally, the panel highlighted notable bankruptcy trends affecting both businesses and consumers. Bankruptcy filings have risen steadily over the past year, with Chapter 11 and Chapter 13 cases seeing significant increases. Higher interest rates have pushed financing costs to multi-decade highs, contributing to elevated corporate bankruptcy levels not seen since 2010. Of particular importance to creditors, Subchapter V bankruptcies have become the most common filing option for small businesses, reinforcing the need for early intervention, strategic negotiation, and informed recovery planning as financial pressures continue into the year ahead.
Our team is constantly monitoring these topics. If you have any questions or would like to learn more about Weltman’s consumer, commercial, and/or bankruptcy recovery solutions, feel free to connect with Sara or Andy at any time.
This blog is not a solicitation for business and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship, or be legally binding in any way.
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Below are Sara and Andy’s key takeaways!
One key takeaway for creditors was the evolving role of the Consumer Financial Protection Bureau (CFPB). While recent federal actions, including significant budget cuts, staffing reductions, and suspended operations, suggest a period of deregulation, this shift does not eliminate compliance risk. Instead, creditors should expect increased oversight at the state level, where regulators may step in to fill enforcement gaps. Maintaining strong compliance practices and monitoring state-specific developments will remain critical to mitigating risk.
The presentation also addressed the growing impact of tariffs on the equipment finance industry. Rising costs for imported equipment and parts continue to strain borrowers’ cash flow, increasing the likelihood of payment disruptions and defaults. For creditors, this environment underscores the importance of proactive portfolio monitoring, early borrower engagement, and strategic risk mitigation. Exploring alternative suppliers, reassessing collateral values, and encouraging operational flexibility can help preserve asset performance in a volatile pricing environment.
Finally, the panel highlighted notable bankruptcy trends affecting both businesses and consumers. Bankruptcy filings have risen steadily over the past year, with Chapter 11 and Chapter 13 cases seeing significant increases. Higher interest rates have pushed financing costs to multi-decade highs, contributing to elevated corporate bankruptcy levels not seen since 2010. Of particular importance to creditors, Subchapter V bankruptcies have become the most common filing option for small businesses, reinforcing the need for early intervention, strategic negotiation, and informed recovery planning as financial pressures continue into the year ahead.
Our team is constantly monitoring these topics. If you have any questions or would like to learn more about Weltman’s consumer, commercial, and/or bankruptcy recovery solutions, feel free to connect with Sara or Andy at any time.
This blog is not a solicitation for business and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship, or be legally binding in any way.
