Creditors Object to Detroit Bankruptcy

Ad Feedback

Monday marked the deadline for creditors to object to Detroit's bankruptcy filing.

In July, Detroit became the largest city in the United States to file for bankruptcy.

Creditors, including the city's two employee pension systems, bond holders, insurers, banks, individuals and companies that provided services could lose big if the municipal is declared insolvent.

The city is more than $18 billion in debt.

A handful of creditors have already objected to the request for bankruptcy, saying it violates a Michigan constitutional provision protecting pension and retirement benefits.

Meanwhile, Detroit residents say they've been left out of the bankruptcy process.
 
"We don't have a voice. They didn't give us a chance to speak," Randy Heard, a 52-year-old unemployed gas utility worker, said. "Our [elected] leaders said we don't want a bankruptcy. Democracy has been shut down in Detroit."

After Monday, the city has until Sept. 6 to address any objections. Then a federal judge will decide whether to allow the bankruptcy filing to proceed.

Log in or create an account to post a comment.  

CBN IS HERE FOR YOU!

Are you seeking answers in life? Are you hurting? Are you facing a difficult situation?

Find peace with God, discover more about God or send us your prayer request.

Call The 700 Club Prayer Center at 1 (800) 823-6053, 24 hours a day.

A caring friend will be there to pray with you in your time of need.

CBNNews.com

CBNNews.com

CBN News is a national/international, nonprofit news organization that provides programming by cable, satellite, and the Internet, 24-hours a day. Follow us on Facebook, Twitter, and Google+.