Detroit nears Bankruptcy

Detroit cityIt is a matter a weeks before Detroit becomes possibly the largest chapter 9 municipal bankruptcy filing in the US. What was America’s 5th largest city, today is the 18th with a growing loss of population that have added enormous costs labor, health care and pensions for retirees, add to Detroit’s enormous 13 billion debt.

The auto manufacturers say little about the situation. Another challenge to Detroit is the labor agreements with over 45 bargaining sectors of Detroit’s workforce.

Bankruptcy lawyers in Irvine CA, counsel from Hobbs Legal Solutions, said that in Chapter 9 bankruptcy would allow Detroit to eliminate the collective bargaining agreements with the unions.

Then it would be a matter of battling the rising expenses, since Detroit can’t raise taxes to avoid a further exodus from the city.