Justice Daniel S. Opperman, an Eastern Michigan alumnus, was the second speaker in the monthly lecture series “The View from the Bench,” hosted by the Political Science Department.
On Monday he gave a talk at Halle Library entitled “Judging vs. Lawyering: The Professional and Personal Changes When Switching Jobs to Become a Judge,” which focused on giving a behind-the-scenes look at what happens when someone files for bankruptcy and the how the career changes when becoming a judge.
Opperman attended EMU and graduated magna cum laude in political science and history, and then received his juris doctor from Wayne State.
He was sworn in as a judge in 2006 and now sits on the Bankruptcy Court of the eastern district of Michigan, which covers the eastern half of the state, including Detroit. Previously he was an attorney concentrating on litigation, bankruptcy and real estate.
With a straightforward style laced with a sharp wit, he discussed the transition from attorney to judge, talked about the bankruptcy court and procedures and addressed misconceptions about his profession. His talk was accessible to the general audience and offered a gentle introduction to the topic without compromising quality.
Opperman first addressed the misconceptions people have about bankruptcy.
In 2009, the eastern district of Michigan had over 51,000 cases of bankruptcy filings. In 2010, there were just over 50,000. This far into 2011, he has seen only about 33,000 filings, a huge decrease from the previous years.
Opperman cautions against prematurely interpreting these results: “The bankruptcy rate is not necessarily a bad thing. When people have nothing to lose they don’t file. It’s when they get back to work and their wages are garnished that they start filing.”
An increase in bankruptcy filings might actually reflect an increase in population employment.
Michigan can lay claim to several notable bankruptcy cases. In the list of top 10 largest bankruptcy cases by total assets at time of filing, General Motors comes in fourth, filing with $91 billion in assets. Chrysler comes in eighth, filing with $39 billion in assets. Both are headquartered in the Metro Detroit area.
These are not typical cases and the vast majority are cases of individuals filing for bankruptcy.
Opperman mentioned most cases are voluntary, but it is possible to be forced to declare bankruptcy.
“We get maybe 1 or 2 forced filings,” he said. “It does happen, but it’s rare.”
Involuntary bankruptcy involves a petition of the creditor to the courts to try to prove the debtor is not making attempts to pay. Most of the time, creditors do not want their debtor to file bankruptcy because they still can get money by garnishing wages and seizing property.
The most prominent myth about bankruptcy and especially bankruptcy lawyers is that the whole concept and profession is focused on ruining the debtor’s life and dissolving hope. Opperman made a point to emphasize this is directly contrary to even the Federal Supreme Court’s view of bankruptcy.
In 1934, the Supreme Court made this statement about bankruptcy: “It gives to the honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.”
Opperman stressed the optimism of the process: “Our goal is to give that debtor a fresh start. We want to get people back on their feet and on their way.”
Opperman put a positive light on the general process of bankruptcy, noting the relatively generous
practice of reorganization or adjustments of assets is fairly new.
“Before, people were jailed outright if they couldn’t pay their dues,” he said. “The need for labor and productive members of society was judged as being more important than jailing people.”
He also explained the principle of asset adjustment is not to ruin the debtor’s life. For example, things like clothes, housing that is paid off and other basic necessities are not seized.
The profession is demanding and requires a comprehensive skill set. Opperman discussed what it takes to be a good bankruptcy lawyer.
“We need people with good listening, talking, problem solving and negotiating skills,” he said. “You need a good business sense.”
Bankruptcy is, whether forced by circumstance or simply bad luck, still an unfortunate status. But Opperman made it clear the courts aim to do what is fair for all parties involved.
The lecture series “The View from the Bench” will continue with two more talks concerning the “Hidden World of Administration Law” and “The Role of Clerks in Law Firms.”
