ARAG Legal Insurance - Badge
Avvo Rating - Badge
Lawyers.com - Badge
Google Rating - Badge
Better Business Bureau - Badge

Detroit Bankruptcy Looks to be Long and Difficult

Liviakis Law Firm Team

Bankruptcy is not just for individuals and businesses. In certain states, municipalities can file for bankruptcy as well. Recently, the city of Detroit filed for bankruptcy, becoming the largest municipal bankruptcy in terms of both population size and debt load.

On July 18, 2013, Detroit filed for bankruptcy. Detroit has approximately $18.5 billion dollars in debt. While the population of Detroit is large (approximately 700,000 people live there), Detroit has lost over half its population from its peak in 1950. Further, it seems that the city is decaying. There are almost 78,000 abandoned buildings in Detroit, and Detroit’s murder rate is at the highest it has been in a long time.

While bankruptcy may be the best answer for Detroit to solve its financial problems, it will not be an easy bankruptcy. Experts believe that the case may last up to three years and that the cost could be in the hundreds of millions of dollars.

Further, there are those who object to Detroit’s bankruptcy filing. In fact, just a day after the bankruptcy filing, a state court judge held that the bankruptcy filing violated the state constitution. While this ruling is unlikely to derail the bankruptcy case, it shows that Detroit has a long road ahead of it.

Sources: Nick Carey, Reuters, ” Detroit files for bankruptcy, stage set for court fight,” July 18, 2013; Susanna Kim, ABC News, ” Judge Says Detroit Bankruptcy Unconstitutional,” July 19, 2013

Our Office

Former Office
1215 K St

Sacramento, CA 95814

Phone: 916 459 2364
New Office
2377 Gold Meadow Way
#100

Gold River, CA 95670

Phone: 916 459 2364

Client Reviews

Mr. Liviakis is extremely knowledgeable and answered all of the questions that we had about our situation. He made a really difficult time manageable with his help and expertise. I would definitely recommend...

Lindsey Joyner

Mik is a great attorney. Very friendly & professional. Price is was bit high compared to other firms. Probably the highest I've seen. If price your thing, checkout other firms. Other than that, Mik will get the...

Oi Vinn

Mik helped us save our home and settle with creditors during the pandemic after we were forced to close our family business for over a year. I am forever grateful. He was kind and professional and followed up...

Jina and Steven Hale

Mr. Liviakis was timely and professional. He patiently answered questions and explained the process. He provided handouts that clearly outlined due dates. The firm's paralegal was very easy to work with. I...

Wes Pohl

I nothing but great Experiences, and great service.

Tony Boone

Positive: Professionalism, Quality, Responsiveness, Value

Linda Todd

Contact Us

Fill out the contact form or call us at (916) 459-2364 to schedule your free consultation.
  • Language.png Free Consultation
  • Phone.png Phone Appointments Available
  • Gavel.png Talk to Award Winning Attorney Today

Leave Us a Message