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Detroit is Running out of Money – Could be Largest City Bankruptcy Ever!

Posted by Michael Raichelson | Jun 13, 2013 | 0 Comments

After Mammoth Lakes, Stockton, and Riverside, it appears that another municipal bankruptcy is around the corner.  This time, it could be big.

The state of Michigan has appointed emergency financial manager, Kevyn Orr, to resolve the financial crisis of the city of Detroit.  According to Orr, Detroit is weeks away from running out of all cash and must cut long-term debt and retiree obligations. Detroit is already 14 billion in the hole in long-term debt and is possibly looking at filing municipal bankruptcy. However, Orr has a plan to save the largest city from filing bankruptcy. Orr lays out alternatives for dealing with long-term debts, including further change in pay rates and staffing, reducing interest rates, stretching out payment schedules, and outright forgiveness of principal or refinancing.

About the Author

Michael Raichelson

VENTURA & OXNARD BANKRUPTCY ATTORNEY & DEBT SOLUTIONS LAWYER SERVING VENTURA AND LOS ANGELES COUNTY Michael H. Raichelson has over 23 years of experience helping individuals and businesses throughout California and the United States manage their debt problems and find solutions that give them a ...

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The Law Offices of Michael H. Raichelson is located in Calabasas, California, and serves clients in and around Woodland Hills, Wilmington, Harbor City, Carson, Torrance, San Pedro, Long Beach, Compton, Ventura, Gardena, and Los Angeles County.

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