This afternoon saw the fall of one of America's previously fastest growing city - Detroit, Michigan. Officials announced the city's filing for Chapter 9 bankruptcy protection in the United States federal court. This was an effort by the city's governor and emergency manager to salvage an economy that has long been sinking in deep water.
Analysts said that the problem of Detroit lies within its mismanagement, traced way back decades ago. The recent exodus of the population and the decline of tax profits also contributed to the city's stacking debt.
The federal court will decide if the city of Detroit is eligible for Chapter 9 protection. The determination period lasts between 30 to 90 days. The result of the inspection will ultimately decide the number of claimants are allowed to fight over what limited funding Detroit has left to give.
"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," said Detroit's Governor Rick Snyder.
Chapter 9, Title 11 of the United States Code stipulates rules and regulations regarding the protection and assistance granted to municipalities in the country.
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