End in sight for Detroit‘s bankruptcy case

Posted on Friday, October 24th, 2014 at 3:16 pm    

The City of Detroit filed for Chapter 9 bankruptcy in July 2013, after city officials allowed $18 to $20 billion of debt to accumulate over the years. It was the largest municipal bankruptcy filing in the history of the United States. Recently, there has been hope for the city as they begin working towards a more stable financial future. In early November, bankruptcy judge Steven Rhodes will make a ruling on whether Detroit will be out of bankruptcy. Detroit is hoping to go through a restructuring process that would allow them to work towards financial stability. The restructuring would include a debt-cutting plan that would make it possible for the city to cut $7 billion and begin reinvesting in much needed city services. Expert bankruptcy advisor, Martha Kopacz, testified that the plan is promising.

Detroit’s bankruptcy case is unique, as it is the largest city to every file for bankruptcy. If the process works, however, Detroit’s notoriously downward spiral will end, allowing for the possibility of a brighter future. The attorneys at the Bradford Law Offices, PLLC, know that many businesses and American residents are suffering under overwhelming debts. If you are facing this situation, it may be beneficial to speak with a bankruptcy attorney to see if this process or another legal alternative could be right for you. Call our offices in Raleigh today at (919) 758-8879 to learn more.