After more than four months of court hearings, discussions, and debates, Detroit, Michigan has become the largest city in the U.S. to ever enter into Chapter 9 bankruptcy. Judge Steven Rhodes, the presiding judge over the case, gave a 90 minute summary of his ruling, a lengthy address that was quite indicative of the extensive process that began on July 18th of this year.
Judge Rhodes’ ruling was spelled out in an 140-page opinion giving Detroit the approval necessary to proceed with Chapter 9 bankruptcy. Bankruptcy attorneys across the country agreed with the Judge’s ruling, believing it impossible for the courts to negotiate debt settlements with more than 100,000 creditors and 20,000 plus pensioners. One bankruptcy attorney, Nathan Resnick, believes Rhodes went above and beyond his call in explaining his decision, saying, “I think he went a little farther than some judges typically would.”
While many people are dealing with the disappointment of financial loss and an inability to reclaim losses, the decision was necessary in order for the city to put its past in the rearview mirror. A brighter future of financial stability without debt could await the city in the coming years.
Eyes on the Future
Judge Rhodes, much like the rest of the city, had his eyes on the future when discussing the decision: “We have here a judicial finding that this once proud city cannot pay its debt. At the same time, it has an opportunity for a fresh start. I hope that everybody associated with the city will recognize that opportunity.” Many people all across the country have differing opinions on the ruling, but one thing is for sure: chapter 9 bankruptcy will allow Detroit the ability discharge its debts and look towards a brighter future.
With the help of an experienced Dayton bankruptcy attorney, any individual can gain a similar fresh start when struggling with overwhelming debt.