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After filing for bankruptcy last month, the city of Detroit has hired the international auction house Christie’s to appraise a portion of its city-owned art collection, which is housed in the Detroit Institute of Arts. City officials have not yet decided if they will sell any works in an attempt to quell creditors.

Rumors about the fate of the D.I.A.’s illustrious collection circulated quickly after representatives from Christie's visited the museum this past June. The auction house confirmed on Monday, August 5, 2013 that they have been hired to appraise the D.I.A.’s holding but did not specify which portion of the collection they would be evaluating. The auction house said in a statement, “Christie’s was asked to assist due to our expertise in this area across all fine art categories and eras. We understand that a valuation of all the City’s assets (extending well beyond the art) is one of many steps that will be necessary for the legal system to reach a conclusion about the best long term solution for the citizens of Detroit.”

The office of Detroit emergency manager Kevyn Orr will pay for the appraisal, which will cost $200,000 and is expected to wrap up in October. Christie’s will only appraise works of art that are city-owned and are not subject to donor restrictions that could prevent a possible sale.

When Ralph Esmerian, owner of the jewelry company Fred Leighton, filed for bankruptcy and was sentenced to six years in jail for fraud in 2011, the American Folk Art Museum felt the repercussions. Esmerian, a prominent donor and former chairman of the institution, had promised the museum 263 works from his illustrious collection. Since Esmerian’s downfall, the museum has been working with a trustee of the case to reach an agreement, which was recently realized.

The settlement between the Folk Art Museum and Esmerian states that the institution is entitled to 53 of the artworks he promised to donate. While the chosen pieces are yet to be specified to the public, they were selected for their exceptional quality and include portraits, needleworks, fraktur, sculpture, pottery, and scrimshaw. The retained works will enhance the museum’s collection and aid its educational mission.

The Folk Art Museum will be forced to part with the other 210 promised works, which will most likely be sold at auction in an effort to settle other bankruptcy estate claims.

Peter Brant, chairman and chief executive officer of the White Birch Paper Co., has fallen from billionaire status and is turning to his contemporary art collection to help recapitalize the family newsprint business. An early patron of Andy Warhol, Brant recently pledged 56 works to the lending arm of Sotheby’s including works by Warhol, Richard Prince, and Jean-Michel Basquiat. Brant also pledged pieces to a unit of the Deutsche Bank AG and his former business partner, including a Warhol from the early 1960s that is said to be worth around $35 million.

Ranked as one of the largest contemporary art collectors in the United States, Brant joins a number of wealthy collectors who have started taking out loans backed artworks to fund their ventures. It is rumored that Brant used his art collection to provide some of the capital needed to buy White Birch out of bankruptcy in 2011.

According to an annual report, Sotheby’s Financial Services provides consignment loans secured by artworks that borrowers have agreed to sell through the auction house, permitting them to get some of the proceeds as much as a year ahead of time. The auction house also makes term loans on works that clients aren’t planning to sell in order to solidify relationships with borrowers that will hopefully lead to future consignments.