Daily Archives: April 16, 2013

Detroit Filing Bankruptcy?

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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 Chapter 9 bankruptcy, and more do every month since Stockton, California filed its Chapter 9 bankruptcy 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?

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