County Judge Says Detroit Bankruptcy Violates Michigan Constitution

Jul 19, 2013

There’s a new potential roadblock to bankruptcy protection for Detroit.

A judge in Ingham County has ordered the state to withdraw its filing in federal bankruptcy court.

As The Michigan Public Radio Network’s Rick Pluta reports, she says the filing violates the state constitution.

Ingham County Circuit Judge Rosemarie Aquilina says the state can’t do anything that jeopardizes public employee pension benefits. Pension funds are among the largest Detroit creditors. She says the state should not have rushed to bankruptcy court.  

The state is appealing the order, and has no plans to immediately comply with it. State attorneys have asked for a stay to be issued no later than first thing Monday morning. In its appeal, the state says the question is now in the hands of a federal bankruptcy court, and the county judge exceeded her authority.