Vegas bankruptcy seminar is on commission's agenda

Topeka Capital-Journal, The, May 23, 2004 by Alicia Henrikson Capital-Journal

Some people go to Las Vegas and leave bankrupt. But Shawnee County counselor Rick Eckert wants to send two of his assistants there in hopes they come away with a wealth of knowledge about bankruptcy.

"We've been seeing an increase in bankruptcy for the last several years, but it's spreading into other areas of law," said Eckert said, who wants to send two assistants to a three-day Las Vegas seminar and workshop on bankruptcy.

"I've played with the idea of hiring outside counsel to deal with bankruptcy cases," he said. "But I think it will be cheaper to do it this way and educate ourselves."

The county can't afford to hire an attorney who specializes in bankruptcies to work those cases full-time, he said.

The cost for two people would be about $1,600.

Bankruptcy cases can come into play when the county is owed payment on real estate and personal property taxes, Eckert said. For example, Kmart, which filed Chapter 11 bankruptcy in 2003, owes about $37,000 in back taxes on the store the company closed at 240 S.E. 29th.

"My only tool for enforcement and recovery of back taxes is the judicial foreclosure sale," Eckert said. "But we can't do that when a bankruptcy is pending."

Nationally, bankruptcy filings are increasing. In 2000, 1.25 million bankruptcies were filed, according to the administrative office of the U.S. Courts. About 1.57 million cases were filed in 2002 and 1.66 million in 2003.

County Commissioner Vic Miller said his inclination was to approve the request because of the significance of the work involved in bankruptcy cases and the opportunity to learn.

"I understand the merit of it," he said. "We have one case right now, and the cost of this trip is just a fraction of what is at stake."

Commissioners will consider the issue when they meet at 9 a.m. Monday in Room B-11 at the Shawnee County Courthouse.

Alicia Henrikson can be reached at (785) 295-1192 or alicia.henrikson@cjonline.com.