When people with debt problems reach the conclusion it’s time to file for bankruptcy, many find it hard to justify the expense of hiring a bankruptcy lawyer. Even though bankruptcy services are generally quite affordable, taking on any new expense can feel like a mistake.
On Dec. 3, a U.S. Bankruptcy Court judge ruled that the City of Detroit can file for Chapter 9 municipal bankruptcy. That makes Detroit the nation’s largest municipality to file for bankruptcy, greatly eclipsing others on the list, including three California municipalities. Orange County, Stockton and San Bernardino County came in at third, fourth and fifth, respectively, with the largest involving debt levels only a ninth the size of Detroit’s.
Did you know that you can be prohibited from filing for bankruptcy if you're found to have committed defalcation? It's true -- although the term had never actually been defined until now. On Monday, the U.S. Supreme Court took up the issue and defined the term in a unanimous ruling.