Detroit Bankruptcy and pending lawsuits

I was wondering what would happen to pending lawsuits against the city of Detroit, and found this USA Today article

http://www.usatoday.com/story/news/n...limbo/2617597/

I guess any future lawsuits against Detroit face the same fate until the city comes out of bankruptcy.

So basically Detroit has something like double-turbo-immunity right now - not good!

There's a stay on the federal lawsuits too questioning the EM law, even though the defending party is the state of Michigan and not the city of Detroit.

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Originally Posted by 313WX

There's a stay on the federal lawsuits too questioning the EM law, even though the defending party is the state of Michigan and not the city of Detroit.

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I'm hoping BankruptcyGuy weighs in on this, as he is an expert and I decidedly am not, but I think the general idea is to stay any legal proceeding that could interfere with the bankruptcy.

Quote:

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Originally Posted by professorscott

I'm hoping BankruptcyGuy weighs in on this, as he is an expert and I decidedly am not, but I think the general idea is to stay any legal proceeding that could interfere with the bankruptcy.

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That's what I'm assuming too, but was it ultimately at the judge's discretion to apply a stay to those lawsuits as well?