Detroit Bankruptcy Delayed by Weather

It is amazing that something as simple as weather can delay a bankruptcy for a major city. Detroit had a strict trial schedule for resolving the bankruptcy. However, with the recent cold wave, the court has delayed many of those proceedings. That is not really surprising when you think about it.

A town in the northern area has one major part of their budget that they do not have control of. That is ice and snow removal. In a mild year, the spending can be relatively light. In a cold year such as this, more and more of the discretionary spending disappears as the city has to divert more and more money for road work. Other parts of the budget are quickly affected.

The Bankruptcy Court must oversee the budget and help the city come up with a plan for emerging from their bankruptcy. The Court is faced with the same problem that the City of Detroit is faced with. The Court does not know how much money will be needed for road maintenance related to weather either. This is not a huge problem because bankruptcy courts are used to dealing with changing budgets.

If you are having difficulty with your cash flow, it is a good idea to seek professional help and see a qualified bankruptcy attorney. Most good bankruptcy attorneys will give you a free consultation at no risk. You then can decide if you need the professional help.