Debtors Should Seek Privacy Oversight Before Data Sales

Law360 (May 13, 2020, 10:51 AM EDT) -- The COVID-19 pandemic portends the end of a decade of economic growth and the beginning of a devastating recession. Bankruptcies are often thought of as countercyclical — they surge in the wake of financial crises. But the world has changed dramatically since the 2008 recession.

Notably, the evolution of data science, machine learning, artificial intelligence and e-commerce has morphed consumer personal data into a new asset class intertwined with privacy restrictions and potential liabilities that are more complex than they were when the Bankruptcy Code was amended in 2005 to address the privacy of personal data in bankruptcy sales.

Bankruptcy debtors...

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