Charles J. Schneider, P.C.certified consumer bankruptcy specialist
forms for your office visit
call today 734-237-1523
Practice Areas Menu In This Section

Detroit's financial woes persist; bankruptcy is still an option

For the last several years, the city of Detroit has been going through serious financial trouble. Since we last discussed the long-term debt issues faced by multiple Michigan cities, the state has taken over Detroit and its finances. At this time, the city hasn't officially filed bankruptcy, but some officials are preparing for the possibility.

Although the bankruptcy process for municipalities is much different than business bankruptcy, many of the underlying issues are the same. When debt persists, companies can focus on little else, which can completely squash any progress. When a business entity reaches this point, debt can be overwhelming and bankruptcy may be the only option to move forward.

One of the things businesses in debt may have to do to find debt relief is to sell of assets. At this time, the city of Detroit is considering auctioning off one of its biggest assets: its art collection. Housed in the Detroit Institute of Arts, observers believe the collection could be worth as much as $15 billion. A number of highly valued pieces, including works by Rodin and Van Gogh, are owned by the city.

News that the city's art might be sold is alarming to a number of people. In fact, some state lawmakers are working on passing a law that would prevent the sale of the art. However, it's been noted that "federal bankruptcy laws tend to trump state laws." This fact points out how complicated bankruptcy proceedings can be.

As state officials continue to sort through Detroit's debt issues, businesses throughout the state should be reminded that financial hardship can even overwhelm an entity as large as a major city. furthermore, it also shows that there are ways out of debt, which can set the stage for renewed success.

Source: Bloomberg Businessweek, "In Bankruptcy, Detroit Could Sell Off Its Art Collection," June 4, 2013

  • rating

    Posted by MaryDecember 11, 2015

    "I am overwhelmed by your response to my call, even 10 years after my bankruptcy was discharged. You have more knowledge and expertise than I could have imagined. Because of you, my fears have been put to rest. For that, I'm so very grateful. Thank you many times over. "

  • rating

    Posted by ClientOctober 26, 2010

    "... I was extremely impressed with Charles' understanding of the bankruptcy laws to the extent that I felt certain that my best interests were always at the forefront. "

  • rating

    Posted by MarleneJanuary 8, 2014

    He helped me thru my 1st bankruptcy and now the second. I had no idea what to expect , but they kept me informed and answered all my questions. Mr. Schneider is the most experienced and knowledgeable lawyer I have ever met. If you have to file call this attorney first!

  • Avvo Rating 10.0 superb | Top Attorney Bankruptcy
  • Rated By Super Lawyers Charles J. Schneider | visit | super lawyers 2011-2015
  • Avvo Ratting 10.0 superb Top attorney chapter 7
  • Avvo clients' choice 2014 | chapter 7
  • American board of certification | certified consumer bankruptcy specialist
  • AV lexisNexis Martindale-Hubbell Peer Review Rated for ethical standards and legal ability
email us for a response

Let us evaluate your situation
and identify solutions

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy