A look at the next steps for Detroit - Los Angeles News | FOX 11 LA KTTV

A look at the next steps for Detroit

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  • Detroit BankruptcyMore>>

  • Schuette endorses Detroit art deal in bankruptcy

    Schuette endorses Detroit art deal in bankruptcy

    Tuesday, June 17 2014 1:47 PM EDT2014-06-17 17:47:06 GMT
    Michigan Attorney General Bill Schuette has given his blessing to a deal that transfers control of art to the Detroit Institute of Arts.
    Michigan Attorney General Bill Schuette has given his blessing to a deal that transfers control of art to the Detroit Institute of Arts.
  • Detroit files plan to fix debt, leave bankruptcy

    Detroit files plan to fix debt, leave bankruptcy

    Friday, February 21 2014 12:49 PM EST2014-02-21 17:49:57 GMT
    Detroit's emergency financial manager filed a plan Friday that would bring the city out of bankruptcy, providing a detailed look at what the Motor City would look like when it finally sheds its financial burdens.
    Detroit's emergency financial manager filed a plan Friday that would bring the city out of bankruptcy, providing for the first time a detailed look at what the Motor City would look like when it finally sheds its financial burdens.
  • Gov. Snyder: 'Detroit's comeback is underway'

    Gov. Snyder: 'Detroit's comeback is underway'

    Friday, February 21 2014 11:35 AM EST2014-02-21 16:35:28 GMT
    Gov. Rick Snyder issued the following statement today on the filing of a plan of adjustment by  Detroit Emergency Manager Kevyn Orr that is part of the city's restructuring.
    Gov. Rick Snyder issued the following statement today on the filing of a plan of adjustment by  Detroit Emergency Manager Kevyn Orr that is part of the city's restructuring under Chapter 9 of the U.S. Bankruptcy Code.
DETROIT (AP) -

Detroit became the largest U.S. city to file for bankruptcy, raising a flurry of questions about what happens next. Here's a look at what's known about the next steps:

WILL THE LIGHTS GO OUT?

The city's emergency manager, Kevyn Orr, says the city will be open and bills will be paid. And it can do things like keep police on the streets, firefighters on duty and water running. The question is whether these services will be cut later.

HOW LONG WILL IT TAKE?

Detroit is by far the largest city to file for municipal bankruptcy, and because it is, the timeframe for the case isn't known. It could take years to resolve.

WHAT HAPPENS IN COURT?

A bankruptcy judge will be appointed to oversee the case. The city will have to come forward with a list of its creditors and how much it owes them. That wasn't included in the initial Chapter 9 filing. It will also have to prove that it can't pay its bills. Orr has said previously that the city wasn't going to pay some of its debt.

A judge also will likely stay lawsuits against the city. Bankruptcy could change pension and retiree benefits, which are guaranteed under state law.

WHAT WILL THE JUDGE DO?

If the bankruptcy filing is approved, city assets could be liquidated to satisfy demands for payment. The city would propose a reorganization plan. The wide-ranging plan could include anything from selling assets, layoffs, changing union contracts and more. Then, the city would need the support of creditors to emerge from bankruptcy.

  • Local NewsLocal NewsMore>>

  • Detroit soccer team to compete for homeless world cup in New York

    Detroit soccer team to compete for homeless world cup in New York

    Tuesday, July 29 2014 9:03 PM EDT2014-07-30 01:03:06 GMT
    "Soccer's real popular right now, people are playing that have never played before," said Reginald Ikard. "It's a blessing, we're going to represent and try to win." Ikard is talking about his soccer team going to New York, representing Detroit with his teammates, all of whom used to be homeless.Sheilah Clay is president and CEO of the Neighborhood Service Organization."They didn't know anything about this, so it was an overwhelming thought of 'you want us to compete as a team and play in New...
    "Soccer's real popular right now, people are playing that have never played before," said Reginald Ikard. "It's a blessing, we're going to represent and try to win." Ikard is talking about his soccer team going to New York, representing Detroit with his teammates, all of whom used to be homeless.Sheilah Clay is president and CEO of the Neighborhood Service Organization."They didn't know anything about this, so it was an overwhelming thought of 'you want us to compete as a team and play in New...
  • Duggan bringing big changes to Detroit water department, starting with shutoffs

    Duggan bringing big changes to Detroit water department, starting with shutoffs

    Tuesday, July 29 2014 8:51 PM EDT2014-07-30 00:51:24 GMT
    Detroit Mayor Mike Duggan is promising big changes at the water department, starting with the controversial shutoffs."Certainly it has hurt the reputation of the city," Duggan said. "I have been anxious to do something about it for awhile and I am just glad I have a chance to do it,"Emergency Manager Kevyn Orr handed over the water department to the mayor and City Council TuesdayDuggan says better publicizing assitance programs is the biggest priority."I still don't think the people in need h...
    Detroit Mayor Mike Duggan is promising big changes at the water department, starting with the controversial shutoffs."Certainly it has hurt the reputation of the city," Duggan said. "I have been anxious to do something about it for awhile and I am just glad I have a chance to do it,"Emergency Manager Kevyn Orr handed over the water department to the mayor and City Council TuesdayDuggan says better publicizing assitance programs is the biggest priority."I still don't think the people in need h...
  • Construction worker rescued from massive trench collapse

    Construction worker rescued from massive trench collapse

    Tuesday, July 29 2014 8:49 PM EDT2014-07-30 00:49:25 GMT
    Construction workers endured some terrifying minutes in a trench they were working at in West Bloomfield Tuesday afternoon."He was completely buried for upwards of three minutes," said Fire Chief Jay Wiseman.Employees of Daniel White Excavating were laying pipe in a trench -- about 100 feet long and 10 feet deep -- when suddenly , the dirt walls began collapsing on a 39-year-old co-worker and covered him."He actually started moving away from it, and an identical collapse occurred just in fron...
    Construction workers endured some terrifying minutes in a trench they were working at in West Bloomfield Tuesday afternoon."He was completely buried for upwards of three minutes," said Fire Chief Jay Wiseman.Employees of Daniel White Excavating were laying pipe in a trench -- about 100 feet long and 10 feet deep -- when suddenly , the dirt walls began collapsing on a 39-year-old co-worker and covered him."He actually started moving away from it, and an identical collapse occurred just in fron...
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