Detroit Bankruptcy, all of us could pay - Mid-South News, Weather, Traffic and Sports | FOX13

Detroit Bankruptcy, all of us could pay

Posted: Updated:
  • Detroit BankruptcyMore>>

  • Detroit files plan to fix debt, leave bankruptcy

    Detroit files plan to fix debt, leave bankruptcy

    Friday, February 21 2014 12:49 PM EST2014-02-21 17:49:57 GMT
    Detroit's emergency financial manager filed a plan Friday that would bring the city out of bankruptcy, providing a detailed look at what the Motor City would look like when it finally sheds its financial burdens.
    Detroit's emergency financial manager filed a plan Friday that would bring the city out of bankruptcy, providing for the first time a detailed look at what the Motor City would look like when it finally sheds its financial burdens.
  • Gov. Snyder: 'Detroit's comeback is underway'

    Gov. Snyder: 'Detroit's comeback is underway'

    Friday, February 21 2014 11:35 AM EST2014-02-21 16:35:28 GMT
    Gov. Rick Snyder issued the following statement today on the filing of a plan of adjustment by  Detroit Emergency Manager Kevyn Orr that is part of the city's restructuring.
    Gov. Rick Snyder issued the following statement today on the filing of a plan of adjustment by  Detroit Emergency Manager Kevyn Orr that is part of the city's restructuring under Chapter 9 of the U.S. Bankruptcy Code.
  • $350 million on the table for Detroit, judge needed to approve Barclay's loan

    $350 million on the table for Detroit, judge needed to approve Barclay's loan

    Wednesday, November 6 2013 3:03 PM EST2013-11-06 20:03:18 GMT
    On Tuesday, the city of Detroit asked a federal judge to approve its deal to borrow up to $350 million to help the city pay off some of its debts and to provide city services.
    On Tuesday, the city of Detroit asked a federal judge to approve its deal to borrow up to $350 million to help the city pay off some of its debts and to provide city services.
DETROIT (WJBK) -

Leon LaBrecque, JD, CPA, CFP, CFA Managing Partner at the LJPR investment firm says everyone in Michigan could end up paying for Detroit's bankruptcy.

He spoke to Fox 2's Murray Feldman about it during a Fox 2 Newscast.

LaBrecque says the big issue is whether a bankruptcy court will allow municipal pension funds to be affected in a Chapter 9 filing.

Currently municipal pension plans are protected by the State of Michigan's Constitution. 

If the condition of payment of these funds is changed through the process of bankruptcy,  this means other cities may work to remove the pension debt from their books. 

LaBrecque says: Interest rates can rise whether EM Kevyn Orr makes a deal with secured creditors or if Detroit goes into Bankruptcy, the cost of borrowing for everyone will go up.

"This is true whether you live in West Bloomfield, Ann Arbor, Saginaw or Detroit, so now the costs for municipalities goes up and this can effect taxes for everybody in Michigan," says LaBrecque.

 

Powered by WorldNow

WHBQ-TV | Fox 13
485 S. Highland St.
Memphis, TN 38111

Main Station: (901) 320-1313
Newsroom: (901) 320-1340

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices