Detroit became the largest US city to file for bankruptcy, in history, today. They are more than $18 million in debt!! Gov. Rick Snyder stated, in a statement, “This is a difficult step, but the only viable option to address a problem that has been six decades in the making.” Snyder feels this is the only choice in order to restore the city and provide residents with public services that are necessary. The state hired bankruptcy expert, Kevin Orr to lead Detroit out of their financial misery, but Orr was unable to convince the many creditors to take pennies on the dollar.
In a letter accompanying the federal filing, Snyder listed the city's ailments:
The unemployment rate has tripled since 2000
Homicide rate is at its highest in nearly 40 years
The residents wait an average of 58 minutes for police to respond to a call (the national average is 11 minutes).
If the filling is approved, the city's assets could be liquidated to meet demands for payment.
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