Bankruptcy in 2026 to Be Guided by Policy Change, Fraud Scrutiny

The new year will bring a mix of trends in the corporate restructuring world with increased activity expected in industries affected by shifting political landscapes, including renewable energy and cannabis, and greater scrutiny into potential pre-bankruptcy fraud.

Inflation and delayed tariffs, as well as interest rate fluctuations, are likely to prompt more bankruptcy filings in 2026, restructuring professionals said. Meanwhile, the popular liability management exercise trend isn’t likely to go away, especially as the cost of Chapter 11 continues to rise.

Additionally, creditors will ramp up efforts to protect themselves against potential fraudulent activities—a byproduct of two high-profile collapses in ...