A trial over Detroit's eligibility for bankruptcy protection kicks off today with Bankruptcy Judge Steven Rhodes set to hear a host of objections to Detroit's filing. Representatives of unions, pension funds and retired city workers plan to challenge the city's assertion that it is insolvent, despite an estimated $18 billion of long-term liabilities. The parties are also expected to provide evidence and witnesses in an effort to show that the city violated a state constitutional protection for Michigan's public pensions. Finally, lawyers will attack the state's emergency-manager law, which paved the way for the city's bankruptcy filing. Judge Rhodes is likely to decide on these issues by the end of the year. His ruling will determine whether the bankruptcy can proceed.
