Detroit bankruptcy woes - KSWO 7News | Breaking News, Weather and Sports

Detroit bankruptcy woes

A federal judge is expected to rule Tuesday on whether Detroit is eligible for bankruptcy protection, a crucial step in the city's effort to pay off part of its overwhelming debt and to begin rebuilding its dwindling city services.

The decision is also a significant legal test for Detroit, which in July became the largest American city ever to seek bankruptcy protection. If Detroit is ruled eligible to reorganize under court protection, lawyers for the city and its appointed emergency manager may move ahead in submitting a plan to pay off part of its debts and to start reinvesting in essential services.

City officials have said such a plan could be filed before the end of the year, and that the city might emerge from bankruptcy in 2014. Whatever the judge rules, the legal battles will be far from over. Any decision is likely to bring a number of appeals.

If Detroit is found ineligible for bankruptcy protection, the city, which has already begun defaulting on some debt, is also likely to find a flood of demands and lawsuits from its creditors.

  • Local NewsNewsMore>>

  • Long shutdown could hurt economy, a short one just 'a blip'

    Long shutdown could hurt economy, a short one just 'a blip'

    Saturday, January 20 2018 3:36 PM EST2018-01-20 20:36:49 GMT
    Monday, January 22 2018 5:18 PM EST2018-01-22 22:18:48 GMT
    Economists say a lengthy government shutdown could hurt economy, but a short one would be just 'a blip'.
    Economists say a lengthy government shutdown could hurt economy, but a short one would be just 'a blip'.
  • The Latest: Nassar victim says Michigan State billing her

    The Latest: Nassar victim says Michigan State billing her

    Monday, January 22 2018 1:27 PM EST2018-01-22 18:27:36 GMT
    Monday, January 22 2018 5:17 PM EST2018-01-22 22:17:43 GMT

    Three members of the board that oversees USA Gymnastics have resigned.

    Three members of the board that oversees USA Gymnastics have resigned.

  • OSBI Agents Investigate Sallisaw Officer-Involved Shooting

    OSBI Agents Investigate Sallisaw Officer-Involved Shooting

    Monday, January 22 2018 5:12 PM EST2018-01-22 22:12:21 GMT

    A Sallisaw police officer shot a suspect Sunday night. Sallisaw police stopped a silver Ford Focus in the parking lot of the Northeastern Health Systems-Sequoyah.  The driver Jonathan Duane Atchley began assaulting two officers. Officers were forced to shoot Atchley. Atchley was treated at Northeastern Health Systems hospital but he died from the gunshot wound. The Sallisaw Police Department requested OSBI agents investigate the officer-involved shooting. 

    A Sallisaw police officer shot a suspect Sunday night. Sallisaw police stopped a silver Ford Focus in the parking lot of the Northeastern Health Systems-Sequoyah.  The driver Jonathan Duane Atchley began assaulting two officers. Officers were forced to shoot Atchley. Atchley was treated at Northeastern Health Systems hospital but he died from the gunshot wound. The Sallisaw Police Department requested OSBI agents investigate the officer-involved shooting. 

Powered by Frankly