The news coming out of Detroit interesting from a political perspective but it is not particularly relevant for this site. So might wonder why are we covering it at all? The answers is that it highlights the complexity of the Bankruptcy code.
Detroit News article
Detroit Files Chapter 9 Bankruptcy. What the heck is that?
The short answer is its a municipal bankruptcy which are governed by chapter 9 of the US Bankruptcy code. The other more common examples are Chapter 7 (Liquidation) Chapter 13 (individual reorganization) and Chapter 11 (business reorganization). The less common ones like chapter 9 also include chapter 12 which is a family farmer reorganization.
There really is no need to go into too much detail about these but we thought that this recent filing was a good time to refresh on the different chapters that are available. As always more on this topic can be found in the book. Which you can buy off this site or on Amazon.com
Detroit News article
Detroit Files Chapter 9 Bankruptcy. What the heck is that?
The short answer is its a municipal bankruptcy which are governed by chapter 9 of the US Bankruptcy code. The other more common examples are Chapter 7 (Liquidation) Chapter 13 (individual reorganization) and Chapter 11 (business reorganization). The less common ones like chapter 9 also include chapter 12 which is a family farmer reorganization.
There really is no need to go into too much detail about these but we thought that this recent filing was a good time to refresh on the different chapters that are available. As always more on this topic can be found in the book. Which you can buy off this site or on Amazon.com
No problem glad you find the site useful.
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