Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Judge Speeds Up Detroit's Eligibility Hearing
Author: Joel R. Glucksman
Date: September 10, 2013
Key Contacts
Back
Legal commentators have noted that they expect the Detroit Chapter 9 bankruptcy case to be a tedious and time-consuming process. This projection has been supported by the large number of creditors filing objections seeking to prove that the city is not eligible to seek out bankruptcy protection. However, the bankruptcy judge who is overseeing the case appears to be attempting to speed up the process.
U.S. Bankruptcy Judge Steven Rhodes has announced that he will begin hearing legal arguments on September 18 about whether the city is eligible to file its unprecedented $18 billion-dollar bankruptcy case. This is well ahead of the October 23 date that Rhodes originally set to begin hearing oral arguments. Rhodes noted that given the number of creditors opposing the bankruptcy filing, it would be prudent to hear arguments earlier rather than later. Currently, 109 creditors are challenging the constitutionality of Detroit’s bankruptcy filing.
“The court … concludes that a prompt oral argument on these legal issues will promote just, speedy, and efficient determination of the city’s eligibility,” Rhodes wrote.
The judge also noted that he will not consider objections relating to potential cuts to city-worker pensions until a later date. In his order, Rhodes wrote that, while he “appreciates the extraordinary importance of the pension rights,” he will delay considerations about this issue until he makes a determination about Detroit’s eligibility. At present, unions and city workers are seeking to prove that pension rights are protected under Michigan’s state constitution.
Creditors, unions, and pension groups are expected to argue several factors that call into question the city’s ability to seek bankruptcy protection, including whether Detroit is insolvent, whether it negotiated with creditors in good faith to reach a resolution, and whether the large number of creditors made negotiations feasible, the Economic Times reports. Rhodes wrote that he will be focusing primarily on whether Detroit’s emergency manager Kevyn Orr can prove that the city is truly insolvent.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
Author: Dan Brecher
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Author: Robert E. Levy
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities
Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]
Author: Dan Brecher
Why Compliance Monitoring Matters for NY and NJ Businesses
Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.