Nashville Bankruptcy Attorneys Clark & Washington Break Down Detroit's Historic Bankruptcy

    NASHVILLE, TN, May 06, 2015 /24-7PressRelease/ -- The Nashville bankruptcy attorneys at Clark & Washington wish to explain Detroit's historic 2013 bankruptcy filing that crippled the city. Bankruptcy is not just for individuals or corporations. In some circumstances, an entire community, town or city can find itself on the brink of financial disaster. This is what happened to the city of Detroit.

Detroit's Historic Breakdown
Billions of dollars in debt, the city of Detroit was forced to file for Chapter 9 bankruptcy. Some of the major contributing factors for the city's financial crisis are rooted in the overall collapse of the city's industrial economy and the mass exodus of prominent business men and women from the Detroit area.

Chapter 9 bankruptcy is reserved exclusively for municipalities that have fallen on hard times. To become eligible, a municipality must meet the following criteria:

1. The city must be specifically authorized by state law or a government officer to become a debtor.
2. The city must be insolvent as defined in the U.S. Bankruptcy Code.
3. The city must have the desire to create a plan to deal with its debts.
4. The municipality must obtain the consent of all creditors to whom the majority of the debts are owed to enter into a Chapter 9 plan; at least negotiate in good faith with the creditors to obtain consent and fail; be unable to negotiate with creditors because to do so wold prove impracticable; or reasonably believe that a creditor will attempt to obtain a preference.

Like other, more commonly known forms of bankruptcy, Chapter 9 affords filers the advantage of an automatic stay, which ceases all collection attempts while bankruptcy proceedings are ongoing. With any luck, the city will soon recover. Just like an entire city can find itself in financial turmoil, so too can an individual. If you are considering filing for bankruptcy, contact an experienced Nashville bankruptcy attorney today.

For more information, visit www.bankruptcyattorneynashville.com

Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal Chapter 7 and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.

For more information, visit http://www.bankruptcyattorneynashville.com

# # #