[quote=livinincali][quote=SK in CV]I’m not sure where it says the state’s obligation can be dismissed. The state isn’t even a party to the bankruptcy.
If two parties owe a debt, and one of them is bankrupt, that doesn’t dismiss the other party. I don’t think the bankruptcy judge has the power to dismiss any obligations of the state.[/quote]
The problem is bankruptcy is a federal proceeding and in section 8 of the constitution it says
“To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;”
The federal constitution trumps the state constitution and this bankruptcy proceeding is in federal court not state court.[/quote]
Per my comment above:
If the Michigan constitution is interpreted to mean that city pension obligations are also obligations of the state, federal supremacy is moot. The federal bankruptcy court can only rule on the obligations of the bankrupt debtor. The bankrupt debtor is the city of Detroit. It can’t rule on the obligations of a non-bankrupt debtor. It has nothing to do with supremacy.
