DETROIT — Detroit's bankruptcy is hitting a courtroom for the first time as a judge considers what to do with challenges from retirees who claim their pensions are protected by the Michigan Constitution.
The city wants U.S. Bankruptcy Judge Steven Rhodes to put a stop to lawsuits in other courts, especially after an Ingham County judge said state officials ignored the constitution and acted illegally in approving the bankruptcy last week.
Rhodes has scheduled a hearing for Wednesday at 9 a.m. Protesters are planning to gather outside the Detroit federal courthouse, while lawyers for some of the thousands of creditors arrive early for seats inside.
Lawyers passed people holding a banner outside that says, "Cancel Detroit's debt. The banks owe us." The case is expected to last at least a year.
