bankruptcy

Businesses in Hamtramck, Michigan
Ian Freimuth / creative commons

The city of Hamtramck is ratcheting up the pressure on the state to allow it to file for bankruptcy.

Hamtramck’s city attorney has sent a letter to Governor Granholm urging her to issue an executive order allowing the city to seek federal bankruptcy protection. The letter also says appointing an emergency financial manager would not give the city the tools it needs to correct its financial problems.

The city of Hamtramck says it will run out of money at the end of January, and officials have taken the unprecedented step of asking the state for permission to file for bankruptcy.

Bill Cooper is the city manager of Hamtramck. And he says he’s been a little surprised at the uproar his letter to the state has caused.

"That one little word got a lot of attention," Cooper said, sitting in his city hall office as the phone rang with a call from a reporter.

The word: Bankruptcy.

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