The city of Detroit filed for Chapter 9 bankruptcy protection yesterday, making it the largest city in U.S. history to do so.

“Municipal bankruptcies are relatively rare, and Detroit is significantly larger in terms of debt than any municipalities that have sought bankruptcy protection in the past,” said Kara J. Bruce, associate professor in the UT College of Law. “Detroit is in many ways entering uncharted territory, and will likely set precedent for large-scale municipal bankruptcies in the future.”

Assuming the bankruptcy filing is approved, the move will allow the city additional restructuring alternatives and centralizes its obligations so they can be resolved collectively, Bruce said.

She is available today to discuss the legal process of municipal bankruptcy and what it means for Detroit.

To schedule an interview with Bruce, contact Meghan Cunningham at 419.530.2410 or meghan.cunningham@utoledo.edu.

Tags: College of Law