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In reply to the discussion: Judge says Detroit bankruptcy filing was unconstitutional, must be withdrawn [View all]happyslug
(14,779 posts)Remember under the rulings from the US Supreme Court in the 1930s, municipalities can NOT file Bankruptcy if it is forbidden by STATE LAW. Anyone can file a bankruptcy by paying the filing fee, it is LATER when the objections are heard by the Bankruptcy Judge is the issue of such a filing was LEGAL. If it was illegal, then it is void on its face, but that will only be ruled by the Bankruptcy Judge after a hearing after both sides files briefs and a hearing is held. That may be six to twelve weeks from now.
I suspect the Bankruptcy Judge in this case fears that is the case, thus his desire to send everyone to a mediator to work out the problems. He is hoping the Mediator can get everyone on the same page, but I suspect it is a false hope by the Judge.