Detroit’s bankruptcy to move forward

US Bankruptcy Court Judge Steven Rhodes ruled that all pending lawsuits filed against the city of Detroit would be frozen while Detroit’s bankruptcy is pending. It also incorporates all state-level legal challenges to Detroit’s bankruptcy into the federal case. The judge ruled that the bankruptcy court had “exclusive jurisdiction” over the case. A state court judge had ruled last week that the bankruptcy case violated the state Constitution but her ruling had been stayed upon appeal pending an appellate decision. The hottest issue thus far is the anticipated reductions in state pensions.

For more details read, “Judge Clears Path for Detroit Bankruptcy Case.”

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