Detroits bankruptcy ruling is good news for bondholders, and unlikely to inspire more filings. News about detroit, as well as headlines and stories from around michigan. City officials filed for chapter 9 bankruptcy protection. After municipal bankruptcy pdf the pew charitable trusts. From 1805 to 1847, detroit was the capital of michigan. Bankruptcy judge steven rhodes of the united states bankruptcy court for. While the court plan permits the city to free up additional money to make desperately needed improvements. About bankruptcy filing bankruptcy can help a person by discarding debt or making a plan to repay debts.
Detroit bankruptcy law firm law office of walter metzen. A federal judge in michigan ruled on tuesday that detroit can cut public pensions as it enters bankruptcy. The most powerful leadership lesson you can learn from detroits bankruptcy now is the time for tough decisions. A judge has ruled that detroits bankruptcy can move forward.
The plainstated thesis in the introduction to nathan bomeys new book, detroit resurrected. The most powerful leadership lesson from detroits bankruptcy. Cuts to pensions of detroit retirees go into effect. Taking a closer look at the detroit bankruptcy effects. The judge overseeing detroits bankruptcy is ready to decide whether the citys plan to regain solvency is a good one. Detroit is also the largest city by population in the u. Debtburdened cities around the country are studying a major court decision.
Detroit granted bankruptcy protection after judge rules in. Going broke one city at a time pacific research institute. The city of detroits bankruptcy was driven by a severe decline. The methodology by which the city of detroit calculated this unfunded liability for the bankruptcy filing is unknown and the extent to which it can be included in a final bankruptcy decision is a national issue. It is the largest municipal bankruptcy filing in u. The following is a summary of of the judges decision.
Welcome to the official website containing information for the city of detroit bankruptcy filing for the united states bankruptcy court for the eastern district of michigan. Detroits teachers union will appeal the bankruptcy ruling according to randi. Detroit free press breaking news, sports, business. Rick snyder has dealt with financial crises in the state and how he will handle the detroit bankruptcy could hold. On november 7, 2014, the judge presiding over the detroit bankruptcy. Filing for bankruptcy in michigan has many benefits, including the protection of the automatic stay. S yaccino and m davey, 20b, for detroit a crisis of bad decision and. This article is brought to you for free and open access by yale law school legal scholarship. Rich tucker explains what happened in todays morning bell. Detroit bankruptcy ruling good for retirees, but city has long way to go. A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court. Detroit ready for judges decision on bankruptcy cbs detroit. Regardless of the detroit rulings immediate impact, sdcers has sufficient.
As federal judge steven rhodes said when he approved detroits bankruptcy plan in. Detroit ap a judge said monday that hell announce next week whether detroit is eligible to overhaul itself in bankruptcy court, the most important decision since the largest public filing. Sdcers detroits bankruptcy ruling and its relevance to. Eastern district of michigan united states bankruptcy court. The automobile capital and onetime musicindustry powerhouse could within days become the countrys largestever municipal bankruptcy case as the detroit emergency manager accelerates his plan for. Judge rhodes approves detroit bankruptcy plan with rhodes decision, the city is expected to cut about 74% of its unsecured debt, freeing up significant cash to reinvest in services. To free up the money, services have been cut, libraries and community centers. This is the story of what happens when a great american city goes broke. City teetering on the edge of financial crisis city of detroit bankruptcy update council 25 for information about the city of detroits web site, email the web. They have filed for bankruptcy because their local taxes is not enough to pay off the expenses of the city and their credit obligations at the same time. Children play in the sand at campus martius park in downtown detroit, michigan, u. Detroit pension cuts from bankruptcy prompt cries of. Detroit to be a debtor in this chapter 9 case under 11 u. There are essentially three costs to filing michigan bankruptcy cases with the help of a lawyer.
Detroit bankruptcy law team has been providing expert legal assistance to over 9000 people through the bankruptcy process and on to regain control over their finances. United states bankruptcy court eastern district of michigan southern division in re. My goal is to provide you with honest legal advice. Bankruptcy code governs municipal government bankruptcy filings, but because of the.
Chapter 9 city of detroit, michigan, case eastern district of michigan. Detroit less than 16 months after detroit became the largest city in the united states to file for bankruptcy, a federal judge on friday approved a plan intended to help it escape years of. Now is the time for tough decisions, said michigans governor, rick snyder, on the. With rhodes decision, the city is expected to cut about 74% of its unsecured debt, freeing up significant cash to. The city of detroit, michigan, filed for chapter 9 bankruptcy on july 18, 20. Detroit becomes largest us city to file for bankruptcy. Detroit retirees put on notice in bankruptcy ruling. Introduction on july 18, 20, detroit filed for chapter 9 bankruptcy, becoming the largest municipality to file for bankruptcy in united.
The ruling by the detroit bankruptcy judge created new law that is likely to be appealed, with no final decision for some time. Bankruptcy in federal court, detroit free press aug. Federalism form and function in the detroit bankruptcy. Free issue of forbes detroit bankruptcy ruling good news for muni bonds, insurers. Three separate lawsuits are filed in state court seeking to prevent detroit from filing for bankruptcy.
A distributional analysis of the detroit bankruptcy a thesis. However, before you file for bankruptcy in michigan, you should discuss your financial situation with a. A federal judge announced on tuesday that detroit is eligible for bankruptcy protection the first time in us history that a major city has been declared bust. The milestone ruling could affect the retirement of millions of current and former municipal workers. Detroit presents a study in the lessons of a large municipal bankruptcy. Detroit simple english wikipedia, the free encyclopedia. The state governor declared a financial emergency in march 20, appointing an emergency manager. If you have never filed a bankruptcy petition before, you may feel apprehensive about the process, and this is normal. Plan to exit bankruptcy is approved for detroit the new.
Detroit the city of detroit officially became the largest municipality in u. Cuts to pensions of detroit retirees go into effect by thomas gaist 3 march 2015 retired detroit city workers began receiving diminished pensions checks on sunday, in accordance with the. Introduction on july 18, 20, detroit filed for chapter 9 bankruptcy, becoming the largest municipality to file for bankruptcy in united states history. States, the political economy of cities, municipal bankruptcy, and judicial decisionmaking. But the citys departure from bankruptcy does not mean an end to its challenges.
Detroit free press, detroit bankruptcy, kevyn orrs doubts discussed weeks before em was hired, emails show, july 22, 20 mlive, susan j. Consequences of detroits bankruptcy for pensioners a. Judge approves detroit bankruptcy plan detroit free press. Application of the supreme courts landmark decision in the lower courts. The city of detroit, once an economic powerhouse, filed for bankruptcy protection last week. A reporter for the detroit news turned to creditor attorneys in the lansing courtroom and told them of the breaking news.
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