One of my favorite pastimes(?) is watching the behemoth that is the US economy.  I have been fascinated by it since my Intro to Economics class in college way back when (supply and demand baby!).  It’s a pretty incredible engine; dynamic and resilient over the course of hundreds of years.  But it does have some down periods, big ones on occasion, and I have lived through several of these.  And despite clamoring from the left and the right, whether the US economy is good or bad, up or down, really doesn’t depend on who is President.  Our economy has a mind of its own – like a four-year-old or a cranky grandparent.  Regardless, for the past couple of years, we have all been wondering if the USA will fall into a recession or not.  So far, the answer has been “not.”  Which is great.  Gen Z deserves a break or two.  If our economy does go into a recession one thing all in-house lawyers will see is an increase in the number of bankruptcy filings.  It’s never a great day when a major customer of a company files for bankruptcy protection.[1]  Most in-house lawyers know, intuitively, that getting paid amounts owed by that customer will now be a challenge.  But there is so much more that in-house counsel must be aware of when dealing with a debtor in bankruptcy if they expect to properly advise the business on the next steps (or recognize an issue that requires the expertise of outside counsel).  On the other hand, while most in-house lawyers will experience bankruptcy from the viewpoint of a creditor of the bankrupt company (my experience), some will have the unenviable task of seeing it up close and personal as counsel to the debtor filing for bankruptcy protection.  Albert Einstein said it best when he noted, “That’s a bummer, dude.”  He was, as usual, correct (and succinct).  Consequently, in-house lawyers also need a basic understanding of the bankruptcy process in case such a filing becomes a realistic possibility, and they are called upon to provide some initial advice to the business or bring in the experts if necessary (which you will do if the company is on the verge of going under).  Sound painful? Never fear, I got your back.  This edition of “Ten Things” deals with bankruptcy basics for in-house counsel:

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