A seldom-used section of the bankruptcy code was used this week with one of America’s great cities trying to keep from sliding into anarchy. Detroit has lost almost 60% of its population, but has not reduced any of its services to deal with the population decline. This is much like a family who does not recognized that the income is dropping and their debts are increasing.
The hope for Detroit is that the federal judge will allow the City to restructure its Union contracts and its pension obligations. That will not be done without intense litigation in the bankruptcy court. The hope of the City and the state of Michigan is that the judge will let them restructure the city obligations so that it is all much more manageable. Once that happens, the City can come out of bankruptcy much leaner and much more efficient. It would hopefully allow enough extra capital so that the city could begin spending money to reduce the urban decline it is currently experiencing.
Much like Detroit, if individuals are having trouble meeting their obligations, they should consider filing bankruptcy to help reduce the decline. At Bailey & Galyen, we are trained to get the individual back on their feet financially.
If you would like to obtain additional information about Texas bankruptcy, explore your options, learn about the bankruptcy process or discuss your particular situation with an experienced Texas Bankruptcy Attorney, please schedule a free initial consultation by calling us toll free at 800-215-9089. If you prefer, you can also fill out our intake form and we contact you to schedule a consultation.