Livonia Michigan Bankruptcy - Michigan Bankruptcy Blog

Livonia Michigan Bankruptcy

Michigan Bankruptcy Blog


Posted by Peter Behrmann, Esq. On July 18th

Detroit Michigan Bankruptcy

Today the City of Detroit filed for Chapter 9 bankruptcy.  The largest municipal bankruptcy ever.  Read the Detroit Bankruptcy petition here:


Within Chapter 9 bankruptcy, labor contracts can be rejected, and pension liabilities can also be eliminated.  Local governments just need to show that the labor contract is substantially detrimental to the government viability and prove they have made a reasonable attempt to renegotiate.  If they can prove that the contracts can be eliminated by the Bankruptcy Judge to make sure the governmental unit is on the right track for financial viability.    

Only time will tell what is truly going to happen with the City of Detroit filing bankruptcy, but it’s going to be an experience like no other. 

Peter Behrmann is a Livonia Bankruptcy Attorney.  From my Livonia, Michigan location, I represent clients throughout Metro Detroit and beyond, including Garden City, Wayne, Westland, Redford, Dearborn, Taylor, Ann Arbor, Belleville, Northville, Novi, Farmington, Farmington Hills, Plymouth, Canton, and the Counties of Wayne, Oakland, Livingston, and Washtenaw. My practice is limited to helping consumers like you file Chapter 7 and Chapter 13 Bankruptcy.

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