Detroit Bankruptcy?
#16
Re: Detroit Bankruptcy?
I'm surprised they went to Canada to shoot the remake - could have gone back to Detroit where they wouldn't need to waste money designing a set and it would have looked incredibly authentic - perhaps getting an Oscar for Best Production Design ....
#17
Re: Detroit Bankruptcy?
Detroit has something like 18-20 billion dollars in debt, and just around 700,000 residents. I don't think there is any other possibility for them but to file bankruptcy.
Detroit is not a healthy city in any way shape of form.
Median income in Detroit just keeps dropping, its down to somewhere around 25,000 now, about half the national average.
18% in the city are unemployed.
Median value for an owner occupied home 50,000, in 2007 it was 88,000 and keeps on falling.
35.5% of families live at or below poverty.
57% of children in live in poverty.
Only 13% of residents over 25 hold a bachelors degree , compared to 28% nationwide.
The article is from Sept. 2012, so things may have gotten worse since then.
http://www.mlive.com/news/detroit/in...median_in.html
Detroit is not a healthy city in any way shape of form.
Median income in Detroit just keeps dropping, its down to somewhere around 25,000 now, about half the national average.
18% in the city are unemployed.
Median value for an owner occupied home 50,000, in 2007 it was 88,000 and keeps on falling.
35.5% of families live at or below poverty.
57% of children in live in poverty.
Only 13% of residents over 25 hold a bachelors degree , compared to 28% nationwide.
The article is from Sept. 2012, so things may have gotten worse since then.
http://www.mlive.com/news/detroit/in...median_in.html
#18
Re: Detroit Bankruptcy?
A judge in Detroit has ruled the bankruptcy application as a violation of the constitution so this will make things a bit tougher. http://www.bbc.co.uk/news/world-us-canada-23381456 They are pretty much stuck unless they are successful with their appeal.
#19
Re: Detroit Bankruptcy?
A judge in Detroit has ruled the bankruptcy application as a violation of the constitution so this will make things a bit tougher. http://www.bbc.co.uk/news/world-us-canada-23381456 They are pretty much stuck unless they are successful with their appeal.
#20
Joined on April fools day
Joined: Apr 2012
Location: 30 miles from a decent grocery store.
Posts: 10,642
Re: Detroit Bankruptcy?
That's just asinine. If Detroit isn't allowed to go bankrupt in a controlled and organized manner, it is just going to run out of money, then nobody will get anything. Someone needs to tell the onions that money doesn't grow on trees and there simply isn't enough to go round. Chopping salaries and pensions isn't "fair", but where do they suppose the money Detroit needs to carry on in the way it has, is going to come from?
#22
Bloody Yank
Joined: Oct 2005
Location: USA! USA!
Posts: 4,186
Re: Detroit Bankruptcy?
A judge in Detroit has ruled the bankruptcy application as a violation of the constitution so this will make things a bit tougher. http://www.bbc.co.uk/news/world-us-canada-23381456 They are pretty much stuck unless they are successful with their appeal.
The ruling was made by a county circuit court judge. But bankruptcy in the United States is a federal matter.
Federal law prevails over state law for a matter such as this. A bankruptcy judge has no obligation to consider the Michigan state constitution or other state laws. If anything, the judge may very well be compelled to not follow what just happened in the Michigan state court, since creditor priority has to be considered in deciding bankruptcy cases.
#23
Re: Detroit Bankruptcy?
The BBC omitted an important detail from the story.
The ruling was made by a county circuit court judge. But bankruptcy in the United States is a federal matter.
Federal law prevails over state law for a matter such as this. A bankruptcy judge has no obligation to consider the Michigan state constitution or other state laws. .....
The ruling was made by a county circuit court judge. But bankruptcy in the United States is a federal matter.
Federal law prevails over state law for a matter such as this. A bankruptcy judge has no obligation to consider the Michigan state constitution or other state laws. .....
#24
Bloody Yank
Joined: Oct 2005
Location: USA! USA!
Posts: 4,186
Re: Detroit Bankruptcy?
There are also political issues at work here. On the one hand, the state government has thrown its hat into the ring with this, and needs to make sure that the case keeps moving forward; the judge's decision adds drama to the whole affair.
On the other hand, the judge may be doing a bit of grandstanding herself. She issued instructions that her decision be sent to Obama and that he should look into the pension issue, a move that was a bit out of left field. Circuit court judges in Michigan are elected, and this judge is up for reelection next year -- she probably expects that this decision will play well with the votes in her district, even if it is overturned.
#25
Re: Detroit Bankruptcy?
The idea of a city of a bankrupt is something I struggle to get my head around. Is it even possible in the UK?
EDIT: Apparently so: http://www.publicservice.co.uk/featu...y.asp?id=16128
EDIT: Apparently so: http://www.publicservice.co.uk/featu...y.asp?id=16128
Last edited by civilservant; Jul 20th 2013 at 4:28 pm.
#26
Re: Detroit Bankruptcy?
The BBC omitted an important detail from the story.
The ruling was made by a county circuit court judge. But bankruptcy in the United States is a federal matter.
Federal law prevails over state law for a matter such as this. A bankruptcy judge has no obligation to consider the Michigan state constitution or other state laws. If anything, the judge may very well be compelled to not follow what just happened in the Michigan state court, since creditor priority has to be considered in deciding bankruptcy cases.
The ruling was made by a county circuit court judge. But bankruptcy in the United States is a federal matter.
Federal law prevails over state law for a matter such as this. A bankruptcy judge has no obligation to consider the Michigan state constitution or other state laws. If anything, the judge may very well be compelled to not follow what just happened in the Michigan state court, since creditor priority has to be considered in deciding bankruptcy cases.
Last edited by Michael; Jul 20th 2013 at 4:50 pm.
#27
Re: Detroit Bankruptcy?
Interesting Michael, so in essence if there are laws in Michigan that protect those pension plans, Detroit may not be able to get around it? I 'm sure there are many cities around the country watching this very carefully to determine if this is the only road they can take to shake off the burden of these payments. Although I appreciate the burden the state is facing, still tough for those that are dependant on their pensions.
#28
Bloody Yank
Joined: Oct 2005
Location: USA! USA!
Posts: 4,186
Re: Detroit Bankruptcy?
The pensions will probably be treated as unsecured creditors, which gives them a lower status than secured creditors. They'll be at the back of the line, with every other unsecured creditor. They aren't the equivalent of a homestead.
#29
Re: Detroit Bankruptcy?
I think you're right, because if the pensioners were protected they wouldn't now be kicking up such a stink about the bankruptcy filing.
#30
Re: Detroit Bankruptcy?
Interesting Michael, so in essence if there are laws in Michigan that protect those pension plans, Detroit may not be able to get around it? I 'm sure there are many cities around the country watching this very carefully to determine if this is the only road they can take to shake off the burden of these payments. Although I appreciate the burden the state is facing, still tough for those that are dependant on their pensions.
Unless you can quote a federal law, we are just speculating. Unless the Michigan attorney general finds some federal law that overrides Michigan law, he's bound to lose the appeal. I suspect they are now trying to find some basis for the appeal. If one can't be found, what may have to happen is the state passes a law to overturn the bankruptcy protection law (if they have the votes) and then Detroit declares bankruptcy again.
Republicans seem to defend states rights to their last breath until they don't like state laws and then they try to ignore them or pass federal laws to enforce their ideology in all states.
Last edited by Michael; Jul 21st 2013 at 3:33 am.