City of Detroit Files for Bankruptcy

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Detroit files for Chapter 9 municipal bankruptcy

Detroit becomes largest city in U.S. history to file for bankruptcy

Author: Dave Bartkowiak Jr. , Online News Editor, dbartkowiak@wdiv.com

Published On: Jul 18 2013 04:02:14 PM EDT Updated On: Jul 18 2013 04:14:41 PM EDT

http://www.clickondetroit.com/


July 18, 2013 at 4:14 pm

Detroit files for Chapter 9 bankruptcy

Robert Snell, Daniel Howes, Chad Livengood and David Shepardson

Detroit—The city of Detroit filed the largest municipal bankruptcy case in U.S. history Thursday afternoon, culminating a decades-long slide that transformed the nation’s iconic industrial town into a model of urban decline crippled by population loss, a dwindling tax base and financial problems.

The 16-page petition was filed in U.S. Bankruptcy Court in Detroit.

Gov. Rick Snyder’s office was making plans this afternoon to hold a Friday morning news conference at the Maccabees Building, 5057 Woodward in Midtown, according to a source. It’s the same location where the governor declared a financial emergency for Detroit on March 1...

From The Detroit News: http://www.detroitnews.com/article/20130718/METRO01/307180103#ixzz2ZQkrTU6q
 
Confirmed: Detroit Files For Bankruptcy

July 18, 2013 4:17 PM

Reporting Vickie Thomas

DETROIT (WWJ) - Detroit has filed for a Chapter 9 bankruptcy — the biggest municipal filing in U.S. history.

According to sources talking to WWJ City Beat Reporter Vickie Thomas, city officials were preparing the filing earlier Thursday. Federal Court spokesman Ron Hansen confirmed the filing shortly after 4 p.m...

http://detroit.cbslocal.com/2013/07/18/detroit-bankruptcy-filing-could-come-friday/
 
I was back in Detroit recently, visited the DIA and then heard about the possibility of them selling some of the works there. My heart broke. So many days spent wandering those galleries as a kid... this is so terriblly sad. The BK was only a matter of time IMO after appointing the outsider to run the city.
 
Long-suffering Detroit finally turns to bankruptcy

COREY WILLIAMS, AP
3 hours ago

DETROIT (AP) — At the height of its industrial power, Detroit was an irrepressible engine of the American economy, offering well-paying jobs, a gateway to the middle class for generations of autoworkers and affordable vehicles that put the world on wheels.

But by Thursday, the once-mighty symbol of the nation's manufacturing strength had fallen into financial ruin, becoming the biggest U.S. city ever to file for bankruptcy — the result of a long, slow decline in population and auto manufacturing.

Although the filing had been feared for months, the path that lay ahead was still uncertain. Bankruptcy could mean laying off employees, selling off assets, raising fees and scaling back basic services such as trash collection and snow plowing, which have already been slashed...

http://xfinity.comcast.net/articles/news-national/20130719/US--Detroit.Bankruptcy/
 
BetteDavisEyes said:
Long-suffering Detroit finally turns to bankruptcy

COREY WILLIAMS, AP
3 hours ago

DETROIT (AP) — At the height of its industrial power, Detroit was an irrepressible engine of the American economy, offering well-paying jobs, a gateway to the middle class for generations of autoworkers and affordable vehicles that put the world on wheels.

But by Thursday, the once-mighty symbol of the nation's manufacturing strength had fallen into financial ruin, becoming the biggest U.S. city ever to file for bankruptcy — the result of a long, slow decline in population and auto manufacturing.

Although the filing had been feared for months, the path that lay ahead was still uncertain. Bankruptcy could mean laying off employees, selling off assets, raising fees and scaling back basic services such as trash collection and snow plowing, which have already been slashed...

http://xfinity.comcast.net/articles/news-national/20130719/US--Detroit.Bankruptcy/
Click to expand...

I've never heard of a city actually going bankrupt - I know they've cut services but would the federal gov't step in and bail them out?
 
my heart breaks for my city. I have a lot of family still living there, and while I dont worry for them (and maybe I should esp if they are losing important services) I just mourn for the city. What happened to you, Detroit? They don't make em like you anymore. Glad Chauncey Billups and Rasheed Wallace are back in town - it might give some people there some hope... something to look forward to once in a while anyway.

Quicken Loans is headquartered downtown and they seem to have such hope for the city. I used to say that everything cycles, and it will come back one day... but perhaps not in my lifetime.

O/T just me rambling... I often watch the "Detroit blight" videos on youtube, tears in my eyes. I decided to go try and find positive videos instead and did stumble on some good ones, thankfully. I love you, Detroit, you made me who I am today. So sorry and sad for you now.
 
No signs Washington to come to Detroit's rescue

TOM RAUM, AP
42 minutes ago

WASHINGTON (AP) — During the bleakest days of the Great Recession, Congress agreed in bipartisan votes to bail out two of Detroit's biggest businesses, General Motors and Chrysler.

Today, however, there seems little appetite from either Democrats or Republicans in Washington for a federal rescue of the birthplace of the automobile industry. Detroit now stands as the largest American city ever to file for bankruptcy protection.

Such a bailout would be huge, perhaps as much as $20 billion. Federal resources are strained, with the national debt at $16.7 trillion and the federal government struggling under the constraints of automatic spending cuts that took effect in March.

President Barack Obama has had a hard enough time getting his present proposals though Congress, where Democrats hold a narrow majority in the Senate and Republicans are in firm control of the House.

"I think it would be a waste of the president's time to even propose it. His plate is so full and throwing Detroit into the mix is the last thing in the world he'd want," said Ross Baker, a political science professor at Rutgers University who specializes in Congress. "I think the era of big government bailouts is over." ...

http://xfinity.comcast.net/articles/news-national/20130720/US--Detroit-Bailout.Blues/
 
That city's issues are not the Nations issues. jmo Let the chips fall where they may. That or get new people to do a better job.
 
I think the thing that bothers me most is those poor people who worked for the city for so many years and now their pensions are in jeopardy. Imagine being a police office in Detroit for 30 years (not an easy job, no doubt) and now you don't know if you have anything to live on. So sad.

I agree (even though I'm not American, so my opinion really doesn't count for anything) that the federal government shouldn't step in. If they did, then all municipalities would/could go hog wild on spending, with no concern about risk.

I hope the people of Detroit can stand with their heads held high. That city was great in its day, and there are so many wonderful people that call it home. If only it could rise again to live another day.
 
Could Detroit offer any abandoned house for free to any person capable of fixing it up? If the criminal activity is squashed and houses offered for free or a dollar I think people would move there. Upon retirement I would consider it. As a retiree I would have the time and money to fix up a house but I would not go any place I would not feel safe. Once these houses have been let out the property taxes would increase and fund city services.
 
LadyL said:
I've never heard of a city actually going bankrupt - I know they've cut services but would the federal gov't step in and bail them out?
Click to expand...
BBM

Late to the party (thread) here, but...
Numerous other cities and municipalities have declared bankruptcy, per wiki:
http://en.wikipedia.org/wiki/Chapter_9,_Title_11,_United_States_Code

A few of the notable:

Stockton, California, June 28, 2012,
Jefferson County, Alabama, November 2011.
Orange County, California -1994

Now back to Detroit. :seeya:
 
miimaa said:
Could Detroit offer any abandoned house for free to any person capable of fixing it up? If the criminal activity is squashed and houses offered for free or a dollar I think people would move there. Upon retirement I would consider it. As a retiree I would have the time and money to fix up a house but I would not go any place I would not feel safe. Once these houses have been let out the property taxes would increase and fund city services.
Click to expand...

Wouldn't that be wonderful? But you hit the nail on the head....you need low crime around you. Also, many of these homes are actually a liability.

A couple of years ago I read an article which said that the average (read that again...the average) home in Detroit had a price of $9000. Why? the homes were in disrepair and the other homes on the street were tumbling down. Mold is an issue. Most of these homes are worth more if they were bulldozed. It costs money to tear them down.

It is truly horrible to see a city in decline and it is incredibly difficult to stop it. I know there have been grassroots organizations who have been trying, but to no avail.
 
miimaa said:
Could Detroit offer any abandoned house for free to any person capable of fixing it up? If the criminal activity is squashed and houses offered for free or a dollar I think people would move there. Upon retirement I would consider it. As a retiree I would have the time and money to fix up a house but I would not go any place I would not feel safe. Once these houses have been let out the property taxes would increase and fund city services.
Click to expand...

Uhhh....last I heard houses were being sold for a few hundred dollars a piece so if you think you want one now is the time to snap it up! Feeling safe is not part of the deal.
 
Detroit bankruptcy tests state pension protections

http://www.centurylink.net/news/rea...p-detroit_bankruptcy_tests_state_pension_p-ap

As the once-proud city of Detroit humbles itself in bankruptcy court, its financial future may hinge on this key question: Is the city obliged to its past? Or can Detroit renege on its promises to thousands of retirees for the sake of its present city services?......

A federal judge overseeing Detroit's bankruptcy case is to hold his first hearing Wednesday, as Detroit spars with its employees over whether state lawsuits from pension beneficiaries can proceed......

"There's not a lot of previous case law that tells us what's going to happen here," said Paul Secunda, a Marquette University law professor who specializes in labor and benefits issues.

"It's not just an issue of bankruptcy law and pension law, it's also an issue of federalism," Secunda said. "Can a federal bankruptcy court basically ignore a state constitutional provision and allow a city like Detroit to ignore its previous promises concerning public employee pensions?"..........

More in 4 page article...

How would this help other than the immediate situation? Then these retirees will end up losing their homes and have to apply for county and state services which will be a huge cost.
 
Judge: Detroit can proceed with bankruptcy

Creditors expected to appeal decision

Author: By Melanie Hicken and Chris Isidore

Published On: Dec 03 2013 11:50:49 AM EST Updated On: Dec 03 2013 11:56:45 AM EST

John McGraw/CNN iReport

NEW YORK (CNNMoney) -
A federal judge has given a green light for Detroit to proceed with its bankruptcy, the largest municipal bankruptcy in history.

The ruling opens the door for the city to cut billions of dollars in payments that are owed to city employees, retirees, investors and other creditors...

http://www.clickondetroit.com/money...tcy/-/1719116/23261738/-/13yohxn/-/index.html
 
December 3, 2013 at 12:13 pm

Detroit eligible for bankruptcy

Robert Snell and Chad Livengood /The Detroit News

Detroit — A federal judge has ruled Detroit is eligible to file for the nation’s largest Chapter 9 bankruptcy to help dig out from under $18 billion in debt and that city pension payments can be cut to help make that happen.

U.S. Bankruptcy Judge Steven Rhodes determined the city meets the criteria for bankruptcy, ruling the city is financially insolvent and that the filing was properly authorized. He dismissed challenges to Michigan’s emergency manager law and ruled that pensions are not protected by the state Constitution.

“The case was filed in good faith and should not be dismissed,” Rhodes said...

From The Detroit News: http://www.detroitnews.com/article/20131203/METRO01/312030049#ixzz2mQzNe78e
 
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