(WXYZ) - Detroit Bankruptcy Judge Steven Rhodes has set an important hearing for next Monday morning that will determine whether creditors can take their case directly to the 6th Circuit Court of Appeals in Cincinnati.
Judge Rhodes ruled Detroit was eligible for bankruptcy last Tuesday. Retirees and creditors want to bypass U. S. District Court in Detroit and say they plan to take their case all the way to the U. S. Supreme Court.
The people who run the two Detroit pension systems hired a special attorney just for the appeal who has argued 33 times in the highest court in the land and won 32 of those cases.
Judge Rhodes ruled 23,000 Detroit City retirees pensions could be reduced in bankruptcy in spite of Michigan Constitutional protections against cuts.
Detroit's debt is $18 billion and pensions are underfunded by $3.5 billion.
Detroit Emergency Manager Kevyn Orr says he will file his plan of adjustment near the end of this month that will spell out how much pensions are reduced. Retirees also face reductions in their health care coverage from the city.