Detriot Files For Bankruptcy

Map of downtown Detroit with I-375 and BS-375 ...

Map of downtown Detroit with I-375 and BS-375 highlighted (Photo credit: Wikipedia)

DETROIT — Detroit on Thursday became the largest city in U.S. history to file for bankruptcy, as the state-appointed emergency manager filed for Chapter 9 protection.

Kevyn Orr, a bankruptcy expert, was hired by the state in March to lead Detroit out of a fiscal free-fall and made the filing Thursday in federal bankruptcy court.

A number of factors — most notably steep population and tax base falls — have been blamed on Detroit’s tumble toward insolvency.  Detroit lost a quarter-million residents between 2000 and 2010.  A population that in the 1950s reached 1.8 million is struggling to stay above 700,000.  Much of the middle-class and scores of businesses also have fled Detroit, taking their tax dollars with them.

In recent months, the city has relied on state-backed bond money to meet payroll for its approximately 10,000 employees.

Read more:  http://www.pottsmerc.com/article/20130718/NEWS04/130719263/once-mighty-motor-city-files-for-bankruptcy