Detroit files for Chapter 9 bankruptcy; largest city in U.S. history to do so

DETROIT - Detroit has filed for Chapter 9 bankruptcy.

Sources had told WXYZ-TV that Detroit could go into bankruptcy as early as Friday, but the news came out early. 

Detroit Emergency Manager Kevyn Orr initiated the process and it was approved by Governor Rick Snyder.

Detroit's deficit is $18 billion, $11 billion is unsecured including the pensions and retiree health care for 30,000 Detroit City employees. 

Orr is a bankruptcy attorney who resigned from The Jones Day Law Firm in March to become Emergency Manager.  Governor Rick Snyder has said he does not like the bankruptcy option but it is a tool on the table to get Detroit back on track.

Detroit Chapter 9 Bankruptcy Filing

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