The National Association of Chapter 13 Trustees (NACTT) is calling for uniform guidelines for utilizing Artificial Intelligence in Consumer Bankruptcy. The association recently examined Artificial Intelligence (AI) and Access to Justice during their annual Bankruptcy Roundtable in Boston in July 2024.
“As technology, including Artificial Intelligence, is being developed and adopted at a stunningly rapid speed, the judiciary is challenged with protecting all parties involved in bankruptcy. Debtors, creditors, attorneys, judges and trustees across the United States need to function with uniform guidance in order to continue the equitable administration of bankruptcy across the country,” said Lon Jenkins, NACTT President.
The consensus among the Bankruptcy Roundtable panelists was that there are many inherent risks to the debtor, legal counsel, creditors and even technology providers when using artificial intelligence in consumer bankruptcy. Specifically, the group of esteemed panelists raised concerns about privacy issues in consumer bankruptcy and a need for uniform guidelines for the use of the evolving technology. The full scope of the risks associated with its use is still unknown.
Particularly at risk are pro se debtors who use generative AI tools to prepare legal documents which are often incorrect. Use of AI to produce court documents increases the risk for a potential breach of confidentiality by allowing access to personal information such as mortgage histories and financial schedules.
During its Roundtable, the NACTT panel discussed discrepancies arising between jurisdictions. The panelists cited the standing order that was recently signed by the US District Court for the Western District of North Carolina that requires filers to certify that AI was not used. The order states that “no artificial intelligence was employed in doing the research for the preparation of this document, with the exception of such artificial intelligence embedded in the standard on-line legal research sources Westlaw, Lexis, FastCase, and Bloomberg.” The panelists discussed that the order makes no distinctions between the different types of AI available making the certification difficult.
The panel of Roundtable experts included Amrane Cohen, Chapter 13 Standing Trustee, Central District of California; Amy Beth Cyphert, Lecturer, West Virginia University, College of Law; Keri P. Ebeck, Bernstein-Burkley, P.C.; Professor Ingrid Michelsen Hillinger, Boston College Law School; Richardo I. Kilpatrick, Shermeta, Kilpatrick and Associates, P.C.; Honorable Keith M. Lundin, United States Bankruptcy Judge, Middle District of Tennessee (Retired); Honorable Cynthia A. Norton, United States Bankruptcy Judge, Western District of Missouri; John Rao, Senior Attorney, National Consumer Law Center; Tara Twomey, Director, Executive Office, U.S. Trustees, U.S. Department of Justice.
A video recording of the Bankruptcy Roundtable can be found here: https://youtu.be/rDmWR0E5808?si=j8E-Yy_sg0yldoHG
Founded in 1965, the National Association of Chapter 13 Trustees is a membership association comprised of more than 1,000 trustees, attorneys, certified public accountants, and other individuals interested in insolvency related issues. The association is dedicated to the highest standards of education related to Chapter 13 bankruptcy. For additional information visit http://www.nactt.com.
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