2025 Bankruptcy Law Institute-2025 Bankruptcy Law Institute

Video Transcription

Video Summary

The transcript covers three main topics from a Bankruptcy Law Institute.<br /><br />First, Katie Brewer and a Subchapter 5 trustee discuss why more attorneys should practice in Subchapter 5 cases. The speaker explains that Subchapter 5 was designed to help small businesses survive bankruptcy more efficiently by reducing cost, compressing timelines, and facilitating consensual reorganization plans. He emphasizes that the system works better than traditional Chapter 11, citing higher confirmation rates and lower professional fees. He also outlines practical concerns for lawyers, including the need to evaluate business viability early, manage deadlines, handle U.S. Trustee document requests, and use accountants or litigators when needed. He notes that restaurants have been a common debtor type and that Subchapter 5 can still work well for less complex, cooperative cases.<br /><br />Second, a panel on artificial intelligence in bankruptcy practice discusses how attorneys are using generative AI tools like ChatGPT, Claude, and Copilot. The speakers explain the basics of AI, machine learning, and prompting, stressing that AI is useful for drafting, organizing data, generating outlines, and improving efficiency, but it must always be reviewed by a human. They give examples of using AI for RFP analysis, document summaries, graphics, and legal research. They warn about hallucinations, sanctions, confidentiality risks, and the need to protect client information. They also discuss disclosure duties, ethical rules, and billing issues, including how AI may push firms toward flat-fee or subscription models.<br /><br />Third, the bankruptcy judges on the “view from the bench” panel discuss courtroom professionalism, motions to withdraw, motion practice, fee applications, pro se filings, AI use in filings, and remote hearing procedures. They emphasize transparency, proper service, detailed fee records, and the importance of following local rules while remaining flexible as procedures evolve.

Keywords

Subchapter 5

bankruptcy law

small business reorganization

Chapter 11

consensual reorganization

bankruptcy trustee

attorney practice

professional fees

confirmation rates

business viability

U.S. Trustee

artificial intelligence

generative AI

bankruptcy judges

courtroom professionalism