Detroit Files For Chapter Nine Bankruptcy
Michigan's largest city has filed for Chapter Nine bankruptcy protection. Struggling with billions of dollars in debt after decades of mismanagement, Detroit is the largest city in the history of the United States to file.
The city is now in a period of 30 to 90 days in which it will be determined if the city is eligible for protection. Governor Rick Snyder said:
The fiscal realities confronting Detroit have been ignored for too long. I'm making this tough decision so the people of Detroit will have the basic services they deserve and so we can start to put Detroit on a solid financial footing that will allow it to grow and prosper in the future. This is a difficult step, but the only viable option to address a problem that has been six decades in the making.