Detroit Bankruptcy

The Detroit Division of the Eastern District of Michigan Bankruptcy Court will hold hearings on the City of Detroit’s eligibility for bankruptcy protection. The key questions revolve around the City’s insolvency. Insolvency under the bankruptcy code means that the debtor’s assets exceed its liabilities. In addition, revenue and expenditures will come into play for the …

The Federal shutdown may affect some areas of the federal government, but not the court system. The U.S. Federal Courts are considered essential services that do not shut down alongside non-essentials. Bankruptcy courts, as part of the federal court system, will remain open during the government shutdown. This is good news for individuals who still …

The attorney appointed to oversee attorney fees in the Detroit bankruptcy is starting to run up large fees himself. Judge Rhodes, the bankruptcy judge presiding over the Detroit bankruptcy has been very strict on attorney fees for consumer bankruptcy attorneys filing Chapter 7 bankruptcy and Chapter 13 bankruptcy. It is interesting to see that the …

Detroit City Council has voiced concerns over the attorney fees the City is paying in its bankruptcy. The bankruptcy attorney fees recently increased and Detroit is responsible for paying the bill no matter the results. Detroit Councilmen Saunteel Jenkins and Ken Cockrel took a tempered approach by offering that if the bankruptcy produces certain results, …