municipal bankruptcy

Politics & Government
3:17 pm
Mon February 25, 2013

Is Detroit gearing up for a "managed bankruptcy?" And what does that even mean?

It appears that officials might be laying the groundwork for a so-called “managed bankruptcy” in Detroit—though it’s something they hope won’t actually happen.

A process for going through Chapter 9 municipal bankruptcy is laid out in the state’s new emergency manager law that kicks in next month. And it could happen even if Governor Snyder appoints an emergency manager for Detroit.

Both state and city officials used to say that bankruptcy was completely off the table for Detroit.

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