I love Detroit. Always have. And it is on the edge of filing bankruptcy.
Cities cannot file Chapter 7 bankruptcy, and go out of existence. They cannot file Chapter 11 or Chapter 12
or Chapter 13 bankruptcy payment plans.
They can file, and more do every month since Stockton, California filed its case last summer.
Stockton has a ton of pension liabilities. Some Detroit municipal employee pensions are 108% of the employee’s salary. Huh?
I would argue plenty of politicians are worth more out of office, doing nothing, than they are in office. Like my state representative, who has 8 criminal convictions.
But, I digress.
Back to the city I still own property in, and maintained an office in for over 20 years, and still frequent without fear.
Why is Detroit bankrupt?