Alumnus Profile:
Glenn Sterns (BBA ‘83)

Making the Best of Bankruptcy

By Rebecca Smith

People may dread their first visit to Glenn Stearns' office, but that visit may be their fastest route to a clean bill of financial health. Stearns, BBA '83, is a Chapter 13 bankruptcy trustee based in Lisle, Illinois . He handles the more than 2,600 Chapter 13 bankruptcy cases filed in northeastern Illinois each year.

Chapter 13 bankruptcies allow individuals to reorganize their personal finances, usually in an effort to hold on to a house and other personal property. Stearns analyzes each petition to determine its mathematical feasibility and compliance with applicable statute, and then he meets with the debtor to determine corrections to the petition and create schedules and deadlines for a sound debt payment plan. The debtor begins making scheduled payments to Stearns' office at the outset of the plan. Once the plan is approved, both the debtor and the creditors are bound by its terms. Stearns' office then pays the debtor's creditors.

"There's a very high level of fiduciary responsibility among Chapter 13 trustees, and an equal amount of governmental checks and balances of the system," said Stearns, a sole proprietor appointed by the Department of Justice U.S. Trustee. He also notes it's unusual for a consumer and his or her attorney to file a perfect bankruptcy petition, so his office spends a good deal of time determining necessary corrections and revisions to each of the petitions filed. (He estimates almost 30 pounds of paper arrives on his desk every day.) Once Stearns adds his seal of approval to a repayment plan, the individual is on his or her way to a clean start.

As a Chapter 13 trustee, Stearns is involved in many aspects of business, and credits his UW-Madison education for providing the foundation needed to manage the diverse needs of consumers.

"As a business student, I learned how the various business disciplines interact, and that's still important to me today," he said. So how did a finance major end up a bankruptcy trustee? According to Stearns, it due to the networking skills he gained at UW-Madison.

"When I was in college, I didn't even know what a bankruptcy trustee was," said Stearns. He met the future U.S. Trustee while working as a credit manager, then landed his position soon after.

"The power of networking has really helped me in my career," said Stearns. "I often run into other Badger alumni, and our link to the School of Business helps us form an instant connection and build solid relationships."

Rebecca Smith is the assistant director of alumni relations at the UW-Madison School of Business.