In re Detroit, Michigan

Detroit (debtor), insolvent, filed for Chapter 9 bankruptcy with municipal pension plans (creditors) among its major creditors; the Michigan constitution declared accrued pension benefits to be contractual obligations that could not be impaired or diminished, but Michigan law separately authorized insolvent municipalities like Detroit to file for Chapter 9 bankruptcy. The pension plans objected, arguing the state constitutional protection barred impairment of their benefits and that any diminishment would violate the Tenth Amendment.