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Detroit Bankruptcy is Largest Ch. 9 Filing in US History

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By Adam Ramirez on July 18, 2013 2:47 PM

The city of Detroit’s recent bankruptcy filing made it the the largest U.S. city in history to seek Chapter 9 protection.

The filing (attached below) came in the face of $18.5 billion in debt to creditors and unions.

Detroit has seemingly tapped out its tax base, with no further ability to tax its population of 700,000, which is down 60% from its peak of 1.8 million in the 1950s.

The Motor City’s bankruptcy filing lays the groundwork for a historic effort to bail out a major U.S. city.

Kevyn Orr, a bankruptcy expert, was hired by the state as emergency manager. He made the filing Thursday in federal bankruptcy court.

Detroit Bankruptcy Filing Largest in US History

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