Judge Speeds Up Detroit’s Eligibility Hearing


Judge Speeds Up Detroit’s Eligibility Hearing

by Joel R. Glucksman on September 10, 2013

Legal commentators have noted that they expect the Detroit Chapter 9 bankruptcy case to be a tedious and time-consuming process. This projection has been supported by the large number of creditors filing objections seeking to prove that the city is not eligible to seek out bankruptcy protection. However, the bankruptcy judge who is overseeing the case appears to be attempting to speed up the process.

U.S. Bankruptcy Judge Steven Rhodes has announced that he will begin hearing legal arguments on September 18 about whether the city is eligible to file its unprecedented $18 billion-dollar bankruptcy case. This is well ahead of the October 23 date that Rhodes originally set to begin hearing oral arguments. Rhodes noted that given the number of creditors opposing the bankruptcy filing, it would be prudent to hear arguments earlier rather than later. Currently, 109 creditors are challenging the constitutionality of Detroit's bankruptcy filing.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Joel Glucksman, Scarinci Hollenbeck | Attorney Advertising

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