Wolfson Bolton PLLC Wolfson Bolton PLLC

City of Detroit Files Chapter 9 Bankruptcy

The first step in the bankruptcy process requires the City to prove that it is eligible for Chapter 9 protection. Eligibility requirements include the City of Detroit proving that it is insolvent and that it has negotiated in good faith with creditors but failed to obtain an agreement to effect a plan of adjustment. If Detroit is found ineligible to have filed a Chapter 9 bankruptcy, the bankruptcy court must dismiss the case.

Categories: 
Related Posts
  • Delaware Court Holds Anti-Reliance Provisions Do Not Bar Fraudulent Inducement Claim Read More
  • Chapter 11’s 547(b) Amendment: What Does “Due Diligence” Mean for Preferential Payment Claw Backs? Read More
  • Is an Unsigned Contract Containing an Arbitration Clause Enforceable? Read More