Detroit's Financial Issues Starting to Boil Over

[bailey]

Do you have a point or do you just like to type?

Well, yes the point was made, but clearly it's lost on you. which isn't surprising.

[mwilbert]

You think this is Detroit's decision and Detroit's alone to decide if it should declare bankruptcy and request receivership?

Regardless of what anyone thinks, it appears that Michigan law doesn't allow a municipality to declare bankruptcy without state permission. First an emergency financial manager would have to be appointed. That person could decide that bankruptcy was the best option. Then they would have to ask permission from either a state review board or the governor [[both are possible, not sure how it is determined which). There are also additional criteria that need to be met under Federal law.

[R8RBOB]

Regardless of what anyone thinks, it appears that Michigan law doesn't allow a municipality to declare bankruptcy without state permission. First an emergency financial manager would have to be appointed. That person could decide that bankruptcy was the best option. Then they would have to ask permission from either a state review board or the governor [[both are possible, not sure how it is determined which). There are also additional criteria that need to be met under Federal law.

Yep, that was me who had to pose the poster who ended their comment with this:

I would hope that Detroit isn't avoiding the inevitable so it doesn't impact other areas in the state.

I don't believe they understand what steps are needed to go into receivership. And for those who believe that Snyder would allow Detroit to go into receivership, don't count on it. A rookie governor taking control of Detroit is not going to happen. He may do everything he can to help Detroit but I don't think the Snyder administration don't want to spend the next four years running the state.......and Detroit.

[ct4life]

For years, talk of the city of Detroit going bankrupt has loomed and has placed fear in the hearts of its leaders. However, how bad would bankruptcy really be for the city? While it would certainly make for negative national headlines, could it possibly batter Detroit's image any worse?

What would a Detroit in bankruptcy look like? Would things really change, in practical terms, for the worse for Detroit's citizens? Given the city's dire financial straits, is bankruptcy what's needed to get Detroit back on track financially?

GM went through bankruptcy, but they're still making cars, and they're about to embark on a multi-billion dollar IPO. Why not bankruptcy for Detroit?

[mwilbert]

This has been discussed very recently:

http://www.detroityes.com/mb/showthread.php?t=7421

[Hamtragedy]

Uh, oh. I'm stuck in a Detroit warp.

[Hypestyles]

a bankruptcy would cancel out exactly what kind of debt? what kind of debt would be unaffected? who, exactly would be the people in charge.. what roles if any, would the mayor and city council play? would pay cuts be mandatory? what would be the minimum and maximum length of time for it to last?