How the Trump Administration’s Policies Could Impact Bankruptcy Filings
- McMann, P.A.
- Feb 23
- 2 min read
Updated: Apr 6
With the Trump administration back in office in 2025, many Americans are wondering how the Trump Administration’s Policies Could Impact Bankruptcy Filings. Changes in tax laws, financial regulations, and interest rates could have a significant impact on individuals and businesses considering bankruptcy.
At McMann, P.A., we understand how crucial it is to stay informed about these changes. Attorney Mark McMann and our legal team are dedicated to helping clients navigate financial hardships and determine whether bankruptcy is the right solution.
Key Policy Changes That May Impact Bankruptcy Rates
Tax Reforms and Their Effect on Disposable Income
The Trump administration has indicated possible tax cuts for businesses and high-income individuals. However, if fewer tax relief options are available for middle-class families, many may find themselves struggling with debt, leading to an increase in Chapter 7 and Chapter 13 bankruptcy filings.
Interest Rate Adjustments and Debt Burdens
The Federal Reserve’s monetary policy is influenced by the administration’s economic stance. If interest rates rise, monthly payments on credit cards, mortgages, and auto loans will increase, making debt harder to manage and pushing more people toward bankruptcy.
Regulation Rollbacks on Financial Institutions
Deregulation of banks and lenders could lead to riskier lending practices, potentially increasing consumer debt levels. While easier access to credit may benefit some, it can also create financial instability for others, leading to more bankruptcy filings down the road.
Healthcare Policy Changes and Medical Debt
If there are changes to the Affordable Care Act or reductions in healthcare subsidies, more Americans may struggle with medical debt. Medical expenses are a leading cause of bankruptcy, and policy shifts could drive more individuals to seek debt relief through bankruptcy.
Changes to Bankruptcy Laws and Consumer Protections
Any new legislation that alters the bankruptcy code could impact eligibility for Chapter 7 and Chapter 13. If stricter means tests are introduced, fewer people may qualify for Chapter 7 liquidation, requiring them to commit to a Chapter 13 repayment plan instead.
Should You Consider Filing for Bankruptcy?
If you’re struggling with overwhelming debt due to job loss, high-interest loans, or unexpected medical bills, bankruptcy may be a viable option. At McMann, P.A., we help clients in Lakeland, Tampa, Orlando, and throughout Central Florida explore their options and find the best path forward.
Call Attorney Mark McMann at McMann, P.A. today at for a free consultation and learn how these changes may impact your financial future.
Mark D. McMann
Comments