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Detroit eligible for Chapter 9 bankruptcy

Updated: Tuesday, December 3 2013, 11:46 AM EST

Detroit (AP) - A judge has ruled that Detroit is eligible to file for bankruptcy.

The ruling Tuesday clears the way for the city to come up with a plan to shed $18 billion in debt.

It comes four months after Detroit sought Chapter 9 protection in the largest public filing in U.S. history.

Detroit must propose a plan to a judge, although mediators have been meeting privately with the city and creditors with the hope of striking deals.

Unions and Detroit's public pension funds vigorously opposed bankruptcy during a nine-day trial.

They claim the emergency manager and his team didn't negotiate in good faith before the summer filing, a requirement for a government to be eligible to shed debts under Chapter 9.


Detroit eligible for Chapter 9 bankruptcy

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Washington Times