DETROIT IS ELIGIBLE FOR BANKRUPTCY AND PENSIONS CAN BE IMPAIRED

A Federal Bankruptcy Judge ruled on December 3, 2013 that the City of Detroit is eligible for bankruptcy. ¬†However, notably the Judge also ruled that protections for public pensions “do not apply to federal bankruptcy court” and that pensions are “not entitled to any extraordinary attention” compared with other debts. ¬†Therefore, the Court held that it has authority to approve City plans that include the diminishment of pension benefits.

Detroit Is Ruled Eligible For Bankruptcy