A federal bankruptcy judge ruled Tuesday that Detroit’s historic bankruptcy will be able to continue and that the city is eligible to shed billions of dollars in debt.
“This once proud and prosperous city can’t pay its debts. It’s insolvent. It’s eligible for bankruptcy,” Federal Judge Steven Rhodes said during this ruling. “At the same time, it also has an opportunity for a fresh start.”
While the bankruptcy plan has not been submitted to the judge, today’s hearing cleared the way for the city to make the submission. The ruling today addressed issues regarding whether or not Detroit was eligible to stay in bankruptcy court.
The decision could have impact nationwide as Judge Rhodes ruled that municipal pensions are like any other contract and can be cut in a federal bankruptcy filing.
Opponents of the bankruptcy plan filed an appeal only minutes after the ruling.
Christian leaders in the city of Detroit are banding together in hopes of stemming the tide of violence that has broken out the last few weeks including a gun battle at a barbershop that left three people dead.
The leaders are plastering the city with “Thou shalt not kill” posters and billboards along with crafting messages for their congregations about combating violence with love.
“We all have to do what we can do, and right now we don’t have a respect in our communities for life; we don’t have a respect for many things,” Ovella Andreas, a Detroit area minister, told WWJ-TV. “But we still have to create a standard to hopefully have a consciousness about God …. because even our people have become apathetic.”
The group has worked with the city to have the 22nd day of each month declared “Stop the Violence Day” in Detroit.
“This is an emergency; this is a crisis, and we have to come together now to do what we can,” Andreas said. “I truly know if we do what we can, God will do what we cannot; but we’re not doing all that we can.”
A third person has died from their wounds in a shooting at an east Detroit barbershop.
Detroit police Sgt. Mike Woody told the Associated Press about the third death at a local hospital but did not reveal the name of the victim.
Woody said that initial reports of 10 shot in the incident at Al’s Barber Shop was incorrect and that only 9 were killed or wounded. Two people died at the shop during the assault Wednesday night.
Police have been looking for two men who reportedly pulled up in matching cars and opened fire. Al’s was believed to be a front for illegal gambling and it’s believed the shootout was due to a bad debt.
Objections to Detroit’s bankruptcy have been filed in federal court by trade unions, pensioners and even some private citizens.
The group is claiming the move by the city to seek bankruptcy protection is unconstitutional. Ironically, the creditors of the city have filed no objections to the city’s bankruptcy filing. Continue reading →
History was made late Thursday afternoon when the nation’s 18th largest city filed for bankruptcy protection.
Detroit’s filing marks years of decline for a once iconic city that houses America’s automotive industry. Financial mismanagement, population loss and a shrunken tax base are all being blamed for the city’s dire state. Continue reading →
The city of Detroit, Michigan is about to default on almost $2.5 billion in debt and is asking the city’s creditors to take ten cents for every dollar they’re owed by the city. Continue reading →
The risk of dangerous and damaging thunderstorms will continue Thursday from Detroit and Indianapolis to Little Rock, Shreveport and Memphis. Continue reading →
Detroit, the 18th largest city in the United States, is on the verge of being declared in a “fiscal emergency” by Michigan governor Rick Snyder.
Detroit Mayor Dave Bing said it seemed likely after talks with Snyder that the governor would declare the emergency and appoint an emergency manager for the city. The city is facing a $327 million budget deficit. Continue reading →