Detroit files for bankruptcy protection

How the payment of workers compensation benefits could be affected by Detroit’s decision to file bankruptcy.

Detroit has become the largest municipality in the United States to file bankruptcy. This will have profound ramifications for people who live and work in the city.

We are immediately concerned about how bankruptcy will affect the payment of workers compensation benefits. Here are some questions that should be answered in the coming weeks and months.

1. Will payments for lost wages and medical treatment continue? Workers compensation is a lifeline for a person who suffers an injury at work. Benefits must continue to be paid even under bankruptcy. The State of Michigan should get involved if necessary.

2. What about settlement checks? Many cases are resolved with a lump sum cash payment. We are concerned that settlement checks will not be promptly issued.

3. Does the automatic stay in bankruptcy prevent new or old cases from being decided by the Agency? We are concerned that our clients will have to wait even longer to get their cases heard. Bankruptcy could take months or years to fully resolve. This would be devastating to families with no income.

Read our workers compensation blog for additional updates. To speak with one of our Detroit workers compensation lawyers, call (855) 221-2667 for a free consultation.

Alex Berman is the founder of Michigan Workers Comp Lawyers. He’s been representing injured and disabled workers exclusively for more than 35 years. Alex has helped countless people obtain workers compensation benefits and never charges a fee to evaluate a case.

Related information:

Detroit Free Press: Detroit files for bankruptcy, setting off battles with creditors, pensions, unions

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