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Wed July 24, 2013
Bankruptcy judge stops lawsuits seeking to halt Detroit bankruptcy
A federal judge has stopped any lawsuits attempting to derail the Detroit bankruptcy.
Federal bankruptcy judge Steven Rhodes says all the issues related to Detroit's bankruptcy must be decided by the federal bankruptcy court exclusively.
His ruling puts a stop to any challenges arising from state courts, including a case filed in Ingham County by lawyers representing Detroit pensioners.
The pensioners say their pensions are protected by the Michigan Constitution and cannot be cut by a bankruptcy court. That issue will now have to be decided by Judge Rhodes.