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Detroit’s Landmark Municipal Bankruptcy Raises Questions Nationwide

Written by Bruce Feinstein, Esq. on . Posted in Bankruptcy Blog

A vacant blighted home is seen next to a well-kept occupied home on West Grand Boulevard in Detroit, Michigan July 23, 2013. REUTERS/ Rebecca Cook

What Does Detroit’s Bankruptcy Filing Mean for City Workers and Residents?

My team and I have been keeping a close eye on the ongoing bankruptcy drama unfolding in Detroit. I previously wrote a post about the city appointing a bankruptcy lawyer, Kevyn Orr,  and recent events have had clients wondering how a city’s bankruptcy filing could affect its greatest asset: its residents.

When it comes to municipal bankruptcy, our office are asked to answer questions about how it can impact communities and public workers. On Wednesday, a federal judge permitted the city of Detroit’s bankruptcy case to go forward after it was challenged by union and pension fund lawyers –  so the challenges facing the city have been front and center on the headlines and people’s minds.

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