Detroit Files Largest U.S. Municipal Bankruptcy

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The Detroit bankruptcy filing will arrive in court Wednesday despite several attempts to block the massive $18 billion debt restructuring.  U.S. Bankruptcy Court Judge Steven Rhodes agreed to an expedited hearing shortly after Emergency Manager Kevin Orr filed for Chapter 9 municipal bankruptcy last Friday.  The main opponents of the bankruptcy are retirees and workers who are primarily concerned with their ability to receive retirement benefits.

On Monday Ingham County Circuit Court Judge Rosemarie Aquilina claimed that the law allowing Michigan Governor Rick Snyder to approve the emergency manager’s bankruptcy filing is unconstitutional.  This ruling was based on the grounds that the governor would be violating the state’s constitutional protections for public workers’ retirement benefits.  In response, State Attorney General Bill Schute has filed an appeal on behalf of the governor to the state appeals court.

[NBC News]

Featured image courtesy of [Ian Freimuth via Flickr]

Kevin Rizzo
Kevin Rizzo is the Crime in America Editor at Law Street Media. An Ohio Native, the George Washington University graduate is a founding member of the company. Contact Kevin at



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