Bankruptcy Judge Steven Rhodes made his first public appearance after the Detroit bankruptcy plan was confirmed when he gave the commencement address at Walsh College.
The judge made a point to emphasize that the case was resolved amicably due to the teamwork of bankruptcy lawyers, creditors, mediators, and other interested parties. Without the bankruptcy attorneys and creditors finding common ground, the case could have become much more litigious, which in turn would increase the cost and time of the case.
In consumer bankruptcy, too, bankruptcy attorney work is vital along with the cooperation of the bankruptcy Trustee and creditors. The more cooperation, the smoother, quicker, and less costly the proceeding becomes.
An experienced bankruptcy lawyer can guide a debtor through the bankruptcy process, around any potential hurdles, and prepare them so that when issues do come about, they are resolved without much effort or litigation.
If you are considering bankruptcy, you should contact a bankruptcy attorney with experience handling Chapter 7, Chapter 13, and non-bankruptcy alternatives, so they can lay out your full options.
Judge Steven Rhodes said Detroit’s bankruptcy was resolved amicably because of teamwork between creditors, lawyers, mediators and politicians who believed in the city’s future.
Rhodes, making his first public appearance since the case concluded in December, told graduates of Walsh College that Detroit deserved a second chance.
“To help the city was to help its people,” he said. “We Americans believe in the obligation of community to promote the welfare of its residents and visitors. And we Americans believe in the obligation of community to promote the full opportunities of its residents and visitors. We Americans believe in the mission of the city of Detroit.”
The mission, he said, is to provide adequate public safety services, transportation, water, recreation and culture.
That city is now on a “course to restore adequate municipal services” after reaching a bankruptcy plan that “treated the city’s creditors as fairly as it could,” Rhodes said.
Detroit’s historic Chapter 9 bankruptcy ended Dec. 10, when the city began implementing a plan to slash more than $7 billion in debt and reinvest $1.7 billion over 10 years in services.
The blueprint includes a comprehensive plan to demolish abandoned homes, boost public safety, improve transportation and invest in badly needed information technology.
Rhodes, who was appointed in July 2013 to oversee the bankruptcy, had not spoken publicly about the case outside of his courtroom until today.
“Judge Rhodes has earned wide respect and admiration for his work,” said Stephanie Bergeron, president of Walsh College. “We can look forward with confidence and greater cooperation to growth and prosperity for our region based in large part to the strength of his guidance, his wisdom and his critical thinking.”
The city, Rhodes said, was in denial about its problems for years.
“The city of Detroit got into trouble because people ran the city, people who were not perfect, people who made mistakes and people who took unnecessary mistakes with the assets and the responsibilities that were entrusted to them,” he said.
But bankruptcy was the right solution.
“In this country, we love to help people. We love to give people a second chance. A fresh start. To forgive them. That, of course, is what bankruptcy is all about,” he said. “It’s a chance for people who have fallen on hard times or made bad choices to start over.”
Rhodes said a remarkable display of teamwork helped resolve the case. He revealed that at a conference he attended shortly after taking the case, he organized a lunch with other municipal bankruptcy judges. One of them advised him to ensure that the mayor and City Council supported Detroit emergency manager Kevyn Orr’s plan of adjustment.
“He was having trouble with that in his case. In fact, they were refusing to implement parts of the plan. I certainly did not want that in my case, so when I came back to Detroit, I announced in court that I expected the mayor and a member of City Council to testify to their support the city’s plan,” Rhodes said.
He added: “I later learned that before I did that, the mayor and the City Council had not been consulted much at all about the plan to adjust the city’s debts or the plan to restore and revitalize the city’s services, even though they would be expected to implement the plan. Well, suddenly there was teamwork between the city’s professionals in the bankruptcy case and its elected officials and employees.”
Detroit Free Press: http://www.freep.com/story/news/local/detroit-bankruptcy/2015/01/24/steven-rhodes-detroit-commencement/22274997/
