A look at the next steps for Detroit

Detroit became the largest U.S. city to file for bankruptcy, raising a flurry of questions about what happens next. Here's a look at what's known about the next steps:
AP Wire
Jul 19, 2013

 

WILL THE LIGHTS GO OUT?

The city's emergency manager, Kevyn Orr, says the city will be open and bills will be paid. And it can do things like keep police on the streets, firefighters on duty and water running. The question is whether these services will be cut later.

HOW LONG WILL IT TAKE?

Detroit is by far the largest city to file for municipal bankruptcy, and because it is, the timeframe for the case isn't known. It could take years to resolve.

WHAT HAPPENS IN COURT?

A bankruptcy judge will be appointed to oversee the case. The city will have to come forward with a list of its creditors and how much it owes them. That wasn't included in the initial Chapter 9 filing. It will also have to prove that it can't pay its bills. Orr has said previously that the city wasn't going to pay some of its debt.

A judge also will likely stay lawsuits against the city. Bankruptcy could change pension and retiree benefits, which are guaranteed under state law.

WHAT WILL THE JUDGE DO?

If the bankruptcy filing is approved, city assets could be liquidated to satisfy demands for payment. The city would propose a reorganization plan. The wide-ranging plan could include anything from selling assets, layoffs, changing union contracts and more. Then, the city would need the support of creditors to emerge from bankruptcy.

Comments

pike84

This is what happens when you inept leaders that don't lead and not make tough decisions.

truthhurts

turn detroit into a corn field! it would be more productive and the brothas will hopefully leave

Zegota

Financial responsibilities, social responsibilities I guess no matter how you say it, or look at it. Detroit screwed up badly, it is what happens when you do not have any foresight, or consideration for future generation. Spend it today for tomorrow you might not have it, it is the exact same economic tool and process that our federal government is dreaming, oops or operation on. Throw more money into the challenge and it will go away eventually, not!
I guess Bankruptcy is the only answer today but just how much this is going to cost the Michigan taxpayers, if our past practice and public solution is the only answer. Guess we can always throw some stimulus funds into the deep endless hole and hope for the best, since these funds are already borrowed from China and from our children's future.
God Help Us...

Grand Haven Happy

Just another glowing example of what democrat leaders produce so well, the results of rampid welfare being given, union caused inflated wages and benefits eliminating jobs, and what a minorities take over results in. Over and over and some never learn! It's being repeated all over the country, has for years, and is in RACE mode now with the pedal to the metal. School districts failed and closed down with state taken over school districts.

It's been right up there in front of everyone's eyes and yet some can't see it and fight to hang on to a big rock even though they are in the middle of of a deep lake. Which way will that rock go? DOWN of course and taking all thoses hanging on to it right to the bottom! Union leaders have promissed their puppet followers utopia for 60 years now with lies and the chickens have come home to roost. The masses had voted for their own economic demise for the last 60 years and here's a heads up! Hello! it's here! Looks like they finally have won their lottery but I sure do notice the cheers and celebration is a not remotely robust!

Sorry but I don't feel sorry for Detroit or any other area as they have done it to themselves!

Say no to new taxes

Every taxpayer in the State of Michigan will end up paying more in taxes to bail out Detroit.

gordbzz231

wzzm tv had a much differnt story on this subject,

 

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