Michigan to see rise in Muni BK Filings?

While the California cities of San Bernardino, Stockton, and even Atwater seem to garner most of the Muni BK headlines, Michigan cities may not be too far behind. 

On Election Day, Michigan voters repealed a law that allowed the state to take control of struggling municipalities. With that option now gone, struggling Michigan municipalities may view a bankruptcy filing as their only option. Those who supported the enactment of the law and opposed its repeal, including the governor, said its repeal may result in the state being caught by surprise when a municipality faces extreme financial difficulty. And, this surprise may prevent the state from effectively administering aid to the  municipality before an eleventh hour bankruptcy filing becomes a necessity. 

Even more uncertain is what this means for the districts and municipalities that are currently being overseen by emergency managers operating under the now-repealed law. For more on this law and the questions it presents, click here.

Download PDF

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title="" rel=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>