Detroit Becomes The Largest City To Ever File For Bankruptcy [Video]
Detroit Broke City! That was the headline ringing though the streets as Detroit became the biggest city ever to file for bankruptcy.
The state-appointed Emergency Manager, Kevyn Orr asked a federal judge for permission to place the city into Chapter 9 bankruptcy protection.
The filing would start a 30- to 90-day period that will determine whether the city is eligible for Chapter 9 protection and define how many people might compete for settlement resources that Detroit has to offer.
The bankruptcy petition would ask for protection from creditors and unions who are renegotiating $18.5 billion in debt and other liabilities.
** Detroit's bankruptcy would be the largest in U.S. history, in terms of the city's population of about 700,000 and the amount of its debts and liabilities, which could be as high as $20 billion. The impact on residents statewide, as well as 30,000 current and retired city workers and Detroit's ability to stay in business could set a precedent for the way troubled cities settle their financial difficulties.