The goal of a managed bankruptcy is to streamline the protracted process by minimizing the chaos, uncertainty, delay and steep costs associated with Chapter 9. It would be the largest municipal bankruptcy in the nation's history, an unambiguous symbol of the city's epic failure and a chance for a fresh start.

"That's exactly the strategy you should do," said Douglas Bernstein, managing partner of Plunkett Cooney's banking, bankruptcy and creditor rights group. "You're never going to be able to get all the unions — and all you need — to agree in advance, not a chance. You try to do it outside of bankruptcy or you drop it in. It's prudent, too. It's very prudent."

In bankruptcy, pre-packaged deals arrange settlements with all creditors in advance of a filing that is usually followed quickly with a plan of reorganization (called "plan of adjustment" in Chapter 9). A pre-negotiated deal akin to the one being explored in the Governor's Office would reach settlements with some creditors and leave others to be litigated in court.

According to Forbes rankings, Detroit is the most miserable city in the United States. 

Home to violent crimes, high unemployment, decreasing population and economic crises, Detroit beat out Miami (last years winner) along with Flint-MI, Chicago-IL, and Modesto-CA.  The news comes on the heels of a panel of experts who said last week "the automotive city was facing a fiscal emergency and potential bankruptcy, as well as a possible financial takeover by the state."

The criteria: "Forbes looked at 200 of the country's largest urban areas and ranked them on factors including crime rates, foreclosures, taxes, home prices, commute times, weather and decreasing populations."

Detroit has been run by Democrat mayors since 1964.