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Bankruptcy Law, Credit, Timothy Kingcade Posts

Judge Gives Green Light for Detroit to proceed with Bankruptcy

Posted on December 4, 2013by Admin

A federal judge has granted the city of Detroit the ability to proceed with its bankruptcy filing. This is the largest municipal bankruptcy in history. The recent ruling, opens the door for the city to cut billions of dollars in payments that are owed to city employees, retirees, investors and other creditors.

Unions and pension funds argued that Detroit did not negotiate with its creditors in good faith in an effort to reach a deal on its liabilities. In his ruling, however, Judge Steven Rhodes found that such negotiations were impractical for Detroit because of the huge number of creditors, which total more than 100,000. Therefore, he concluded that the city filed its petition properly.

The American Federation of State, County & Municipal Employees, a major union, has plans to appeal the decision.

Click here to read more on the story.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Timothy Kingcade Posts

Detroit Bankruptcy Ruling Expected Today

Posted on December 3, 2013by Admin

A U.S. judge is expected to rule today whether Detroit can proceed with its bankruptcy filing. The ruling could open the door for cuts in payments promised to employees, retirees and investors. Unions and pension funds have argued that Detroit should be denied the protection of the court. They say that regardless of the city’s financial troubles, officials did not negotiate with creditors in good faith to reach a deal on Detroit’s debts. This is one of the requirements for a city to proceed with a bankruptcy filing.

Any ruling by Judge Steven Rhodes is expected to be appealed, as the city’s unions and pension funds have been fighting proposals to slash benefits owed to employees and retirees.

Click here to read more on the story.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Big Decision on Detroit Bankruptcy Coming December 3, 2013

Posted on November 25, 2013by Admin

A judge will announce December 3, 2013 whether Detroit is eligible to fix its finances through bankruptcy. This is considered the most important decision since the largest public filing in U.S. history last summer. Judge Steven Rhodes issued a brief order on Monday saying that he will rule from the bench on December 3rd and issue a written opinion later. Rhodes presided over a nine-day trial that ended November 8.

Unions and pensions funds claim Detroit is not eligible to file for bankruptcy because it failed to hold good-faith negotiations prior to the filing in July. The city claims that it did enough. A bankruptcy decision will mean the case would turn to how Detroit can fix $18 billion in debt.

The city’s emergency manager, Kevyn Orr, has warned of chaos if Detroit is not permitted to file bankruptcy. Creditors who were owed money at the time of filing could sue for payment and the long-term debt will continue to accumulate.

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Bankruptcy Law, Timothy Kingcade Posts

Bankruptcy Might be in Detroit’s Future

Posted on December 4, 2012by Admin

As the city and state have failed to make headway over specific reforms, Detroit’s projected deficit is growing. City officials say that bankruptcy is the last resort if the city and state do not come to an agreement. It is estimated that the city will sacrifice a $30 million in state bond funding. Without the bond, the city will be at a $46 million deficit by next May. That kind of deficit is enough for bankruptcy to become the only option. If Detroit files for Chapter 9 bankruptcy, it will be the largest city in history to ever file for bankruptcy protection.
A deep political divide between city leaders in Detroit would make the bankruptcy process even more difficult. Municipalities filing for bankruptcy must have the state’s approval to do so. There are major differences between a company filing for bankruptcy and a municipality filing for bankruptcy. When a city files for bankruptcy, it is simply looking for ways to reorganize debts. Many city and state officials believe bankruptcy is not yet an option because it would mean giving up.
To read more on this story visit: http://www.detroitnews.com/article/20121129/METRO01/211290392/Bankruptcy-unattractive-option-Detroit?odyssey=mod%7Cnewswell%7Ctext%7CFRONTPAGE%7Cs
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. at www.miamibankruptcy.com.