Charles H. Huber, Attorney at Law, Gives Perspective on Detroit Bankruptcy and Its Impact

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As the city of Detroit moves forward with its bankruptcy protection plan trial, Attorney at Law Charles H. Huber explains how the bankruptcy will affect Detroit's residents.

St. Louis Bankruptcy Lawyer

Charles Huber Law

If Detroit's bankruptcy is approved, it will significantly cut the pensions of former city employees who receive their pensions from the city.

More than a year after Detroit filed for bankruptcy, the city is finally beginning its bankruptcy trial that will determine the outcome for the city and whether or not it will have to repay some of the $18 to $20 billion in debts.

Charles H. Huber, attorney at law for the Law Office of Charles H. Huber, says the only thing that differentiates Detroit's bankruptcy -- the largest municipal bankruptcy filing in history -- from an individual filing for Chapter 7 or Chapter 13 bankruptcy is the amount of money involved.

"Whether it's a huge bankruptcy case like Detroit's, or a smaller individual case, the theory is the same," Huber explains. "They both use bankruptcy as a tool provided by the law for businesses and individuals to get back on track and move forward with their lives."

According to the Associated Press ( ), Detroit, whose auto industry was crippled in the recession of 2008, will have its debt reduced to $5 billion if Judge Steven Rhodes approves the plan for debt restructuring that state-appointed emergency manager Kevyn Orr proposed for the trial.

And while the Associated Press reports that Judge Rhodes has scheduled court dates for the trial as far ahead as mid-October, Huber says that there's no way of knowing how long the trial will last.

"The duration of the Detroit bankruptcy is impossible to predict," Huber says. "However, it's important to note that this type of bankruptcy case is so unusual that it would not influence any other cases, unless another large city files bankruptcy as well."

But how will Detroit's residents fare if the city's plan for bankruptcy protection is approved by the courts?

"If Detroit's bankruptcy is approved, it will significantly cut the pensions of former city employees who receive their pensions from the city," Huber says. "For people like retired police officers and firefighters, this means a reduction in their annual pension raises. Detroit's creditors, who have lent out billions to the city, could also be at risk for bankruptcy themselves -- resulting in a chain reaction of bankruptcies that isn't insignificant."

The Law Office of Charles H. Huber is a St. Louis, Missouri, based private law practice that provides bankruptcy help and help with traffic issues. With over 30 years of experience, bankruptcy attorney Charles H. Huber, has consistently helped clients win their cases. Charles H. Huber is a member of the Missouri State Bar Association. For more information on the Law Office of Charles H. Huber, visit

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