Future from page 34
Phil Ring
What I'll miss most: My awesome
high school teachers who let me be
myself and didn't constrain me with
pointless activities and busy work.
And our school's incredible jazz
band.
High School:
Berkley High
School
Plan for next
year: University
of Michigan, Ann
Arbor
Major: Engineering
Hobby: Music, music and more
music. Jazz especially.
Summer plans: Touring with a sym-
phonic band for a month in Europe
with Blue Lake Fine Arts Camp, play-
ing in the Detroit Jazz Festival with
the renowned BHS Jazz Band, and
relaxing.
Why I picked my college: I only
applied to U-M. I didn't want the has-
sle and angst that comes with applying
to Ivy League schools; Harvard and
MIT seemed fun, but the high tuition
and low chance of getting in deterred
me from applying. U-M runs in my
blood and is the only place I want to
go for my degree. Also, Ann Arbor is
a beautiful city. As for my engineering
major, I panicked on the application
and clicked the wrong button.
Rose Henkin
What I'm looking forward to:
Parties. And meeting great people like
me who made the choice to go to U-M.
One word describing how I feel
about next year and why: Giddy.
High school is great, but college is
a utopia for academia where one
can meet like-minded individuals
who are passionate for what they do.
Personally, I live for passion, and meet-
ing passionate people and enjoying the
atmosphere of higher learning makes
me giddy.
If I could take one piece of home
with me next year, it would be: The
BHS Jazz Band. They are amazing. I
honestly don't know how I could have
gone through high school without
being a Jazz Band member. I would
certainly love to take them with me
to Ann Arbor, alas ... all good things
must come to an end.
explore my interest in health sciences
more directly and quickly.
High School:
Community High
School, Ann Arbor
College: University
of Michigan, Ann
Arbor
Major: Movement science in the
School of Kinesiology
Hobbies/extracurriculars: Sports/
fitness, playing trumpet, teacher's
assistant at Temple Beth Emeth, Ann
Arbor, for kindergarten
Summer plans: Fishman counselor at
Tamarack Camps in Ortonville
Why I picked my college: I live in
Ann Arbor and couldn't pass up the
opportunity to attend such an amazing
college. I love Ann Arbor and every-
thing the campus has to offer, and I
know attending U-M will introduce
me to even more. Plus, the School of
Kinesiology offers a path for me to
36 June 20 • 2013
JN
What I'll miss most next year: My
friends who are moving away to out-
of-state colleges.
What I'm looking forward to:
Meeting a ton of new people and expe-
riencing college life. Also, all of the
football games!
One word describing how I feel
about next year and why: Ready.
Senior year has made me realize how
much more mature I've become; that
I'm ready to take on all that college has
to offer, and I'm so ready to not be a
high-schooler anymore!
If I could take one piece of home
with me next year, it would be: Ann
Arbor is home, so there isn't much I
wont have next year that I do now,
other than my best friends who I won't
be able to call up and hangout with at
any time. I know there will be so many
new friends that I'll meet though, so I
can't wait for that!
L
et's assume the city of Detroit is a
person named "Detroiter" rather
than a municipality.
Detroiter has come to see me because
she is in financial crisis.
We meet and gather background
to determine Detroiter's income and
expenses. In a personal bankruptcy
situation, if the amount of
income is too high, it may
eliminate a client's right to
file a Chapter 7 bankruptcy
(which is the complete dis-
charge of the client's debts);
while if too low, it can pre-
clude the filing of a Chapter
13 (personal reorganization)
case. Bankruptcy aside, the
most critical step to resolve
is the future — so that going
forward, income per month
exceeds expenses going out.
If you can't increase income, you must
decrease expense. You must differentiate
between income-producing, essential
employees versus non-essential. You
must either reduce compensation or
replace essential staff with a less-costly
alternative. Non-essential staff, however,
can be cut — and you will need to re-
allocate the workload to the remaining
staff. Of course, the "others" will not
be happy, but they have a choice: work
harder or work elsewhere.
Next, we look at assets. If you are
being pursued by creditors, I need to
know what assets you have and whether
they can be protected. A creditor that
has a judgment against you can garnish
your bank account and obtain an order
to seize property. Like employees, assets
are essential or expendable.
"Cash" is always essential. For a busi-
ness, certain equipment, furnishings and
vehicles are essential. For an individual,
a place to live, viable transportation,
retirement funds and furnishings are
essential. Expendable assets can be sold
— and used to compromise claims with
creditors as needed.
In a bankruptcy, the process of differ-
entiating between essential and expend-
able assets is a legal question, and those
assets that are not legally exempt under
the law are sold off by the trustee and
used to pay creditor claims.
Detroiter's biggest problem is that her
revenues are significantly less than her
expenses, leaving a deficit of $380 mil-
lion each year. Detroiter must eliminate
this deficit. She must cut her non-essen-
tial employees and adjust her ongoing
expenses to pension funds, bond holders
and existing creditors so that her rev-
enues exceed expenses. On assets, she
needs to keep the police cars, buses, fire
trucks, refuse vehicles and
other components of essential
services.
As to Belle Isle, I would say,
"This island is a nice asset —
a beautiful place; but, how
much does it cost you every
year? Would you prefer to
make sure there are enough
police and fire personnel to
make your streets safe or have
a nice venue for the residents
to enjoy?"
Detroiter must make the
island revenue-producing rather than
an expense. This is simple dollars and
sense.
"I see you own an art collection — the
DIA."
Detroiter stops me cold and says, "Oh
no, we're not going there. These are our
most precious assets; this is our heritage,
our culture:'
On this an emotionally charged issue,
I reply, "Of course, these assets are pre-
cious. I understand. But I believe your
most precious assets are and will always
be your children, and you must provide
them a home (and a city) that is safe
where they can grow and nurture the
future of our community. What good is
the art if we continue on a path where
there are insufficient revenues to cover
expenses?"
Detroiter needs to understand the
reality: If a bankruptcy is filed, it is the
courts and legal process that will decide
what happens to the art.
Outside of bankruptcy, it is what she
can negotiate to solve the entire prob-
lem. So let me ask you a question: If
push comes to shove, Detroiter, would
you rather save the city and some of the
art, or roll the dice in the court?
❑
Ken Gross is an attorney with Thav Gross
and host of the Financial Crisis Talk Center
show that airs weekly at 9 a.m. Saturday
mornings on WDFN 1130 AM, "The Fan" and 1
p.m. Sundays on MyTV20.