- Free Consultation: (202) 448-5136 Tap Here To Call Us
Do Not Be Like Detroit
On July 18, 2013, the city of Detroit filed for protection under Chapter 9 of the Bankruptcy Code. Major legal brawls are now in the works for the nation’s 18th largest city, its 9,500 employees, and nearly 20,000 retirees drawing pensions. Most consumer bankruptcy cases are a lot less complex than the bankruptcy for a major metropolis, but there are lessons we can glean. If you are facing bankruptcy, do not be like Detroit.
Commentators, some nearly apoplectic, have asked the question, “Why couldn’t Detroit avoid bankruptcy?” That is the wrong question. The question we should be asking is, “What took Detroit so long to file?” Take a look at some of the numbers:
- Detroit has more than 100,000 creditors
- 40 percent of Detroit’s street lights are broken
- Detroit’s homicide rate is at its highest level in nearly 40 years
- Citizens wait an average of 58 minutes for a police response
- Just 8.7 percent of criminal cases are solved
- One one-third of Detroit’s ambulances are in service
- There are about 78,000 abandoned structures in Detroit
- Twenty of the city’s neighborhoods are less than 15 percent occupied
One of the most reliable indicators of economic distress — whether for a company, family, an individual or a city — is the operating deficit, which is the difference between income and expenses. Look what has happened to Detroit’s since 2007:
Do Not Be Like Detroit
Ignoring problems didn’t make them go away in Detroit; it only made them worse. The city now has more creditors, more debt, and fewer options than it had just a few months ago. Do not be like Detroit. If you have a financial problem, address it head-on.
UPDATE 3/27/16: Alex Alsup spent thousands of hours exploring Detroit, virtually, to collect images tracking the city’s rapid and continuing devastation following the financial crisis. Alsup started the ongoing project three years ago and publishes it on his blog Goobing Detroit. In many cases, you can see vacancy spreading through entire blocks in just a few years, blight taking over empty homes, and foliage growing over the blight.
They Called. They're Glad They Did.
Brian Lee from Lee Legal was an amazing attorney to work with. He took his time, reviewed my documents and we discussed my situation thoroughly. He explained the process and my options as well as gave his recommendation. Not only did he assist, but he ensured that I knew this...
I was very nervous and scared about going through this process. But Brian was very knowledgeable and helped me through it. I was notified about any and all updates to my case and he was very responsive when I had questions regarding any concerns I had. Although a bit nerve...
Brian provided me with a very detailed analysis about my potential case after our first consultation. He promptly responded to all my complex questions, especially navigating student loans and some tax discussions. He is very professional and experienced at what he does, I would...
I've had the pleasure of working alongside Brian V. Lee for several years, and I can say without hesitation that he is one of the most knowledgeable bankruptcy attorneys in the DMV area. Brian's command of Chapter 7, 11, and 13 practice is exceptional, and his clients in the DC...
Brian has the amazing talent of taking complicated legal matters and distilling them down to seamless, frictionless resolutions. He is a phenomenal problem solver and a trusted advisor.
Brian is both warm and professional. He helped me navigate a financial issue that I had not been looking forward to working on and he made the entire experience non-stressful, receiving a lot of anxiety I had around the matter. He is straight forward and a fantastic problem...
I had the opportunity to work with Brian at a time when I was challenged by a professional setback and forced with the challenge of making some very difficult legal decisions. Additionally, I worked with him again as I was dealing with some financial issues pertaining to my...
Still several years from Public Service Student Loan Forgiveness and saddled with significant student loan payments in proportion to my income, I came to Lee Legal to explore the bankruptcy path. Through his counsel, Brian took the fear out of the process and helped me to...
