Consumer Debt

Repayment of student loans is a serious problem for many individuals. This session will focus on both nonbankruptcy and bankruptcy ways of dealing with student loans. What nonbankruptcy options exist to deal with student loans? What are income-based repayment programs, and do they work? What other nonbankruptcy creative strategies can be employed? What does it take to discharge a student loan under § 523(a)(8)? Is the Brunner test the only option? What other legal standards may apply? What are the options in chapter 13? Do student loan claims count for purposes of eligibility debt limits? Can student loans be separately classified and paid differently than other unsecured claims? Should a chapter 13 debtor file a § 523 complaint and, if so, when? What are some possible legislative solutions to student loan problems?

Are there nonbankruptcy alternatives that might better suit your client to deal with their financial difficulties apart from bankruptcy? This session will discuss the possible alternatives and their pros and cons, such as the effectiveness of negotiating with creditors individually, offers in compromise in dealing with the IRS and other governmental units, trial loan modifications and permanent loan modifications on mortgages, tax ramifications if a creditor agrees to discharge the debtor from liability, information that must be disclosed when negotiating a compromise with creditors outside of a judicial proceeding, and how debtors’ attorneys get paid for providing nonbankruptcy alternatives for debtors dealing with their creditors.

An examination and debate of the case law, political and legislative developments that could impact the student loan crisis and whether under the current climate there is any chance of or need for change.

In this round-and-round format, visit with leading judges (each at their own roundtables) to discuss and debate the nation’s most important recent business and consumer bankruptcy decisions.

It is not uncommon for issues to arise in consumer cases after they are filed regarding pre-petition and post-petition tax liabilities. To make sure that a client understands the possible outcome of these issues and is not surprised when they crop up after the bankruptcy petition is filed, it is imperative that debtor’s counsel alert and counsel the debtor about these potential issues before the petition is filed. What tax clams are nondischargeable? What constitutes a tax return for purposes of § 523? What is a tax transcript, how can one get one from the IRS, and how does one interpret what it says? This session will also focus on understanding the implications of unfiled returns and substitute returns, especially the current split among the circuits regarding late-filed returns and their consequences for determining dischargeability, distinguishing the treatment for secured, priority and general unsecured claims in chapters 7 and 13, interest on secured or nondischargeable tax claims, and advising the client as to whether chapter 7 or 13 is the best course of action to deal with the debtor’s tax liabilities.

The Frank W. Koger Lecture was established by Frank W. Koger, UMKC JD '53, and Mrs. Jeanine Koger to enhance the understanding of commercial and bankruptcy law among students at the UMKC School of Law. Judge Koger was appointed as a bankruptcy judge for the United States Bankruptcy Court for the Western District of Missouri in 1986. In 1996, he was appointed to the newly formed Bankruptcy Appellate Panel for the Eighth Circuit, and served as its first Chief Judge until his death in 2003.

This session will highlight particularly interesting case law developments to date in 2017 and their impact on bankruptcy law and practice.