Detroit becomes largest city in U.S. history to file for bankruptcy
Last Updated: 141 days ago
DETROIT - Detroit has become the largest city in U.S. history to file for bankruptcy.
State-appointed emergency manager Kevyn Orr on Thursday asked a federal judge permission to place the city into Chapter 9 bankruptcy protection.
The White House says it's standing by Detroit after it became the biggest city in America to file for bankruptcy.
Spokeswoman Amy Brundage says President Barack Obama and senior advisers are monitoring the situation.
Brundage adds that while Michigan leaders and the city's creditors understand their responsibility to solve Detroit's financial problems, the White House will continue to partner with Detroit as it tries to recover and maintain its status as one of America's great cities.
Detroit Mayor Dave Bing says he didn't want the city to go bankrupt, but now that it's happened, the people of the city "have to make the best of it."
Orr it's business as usual in Detroit. He says the city will stay open and bills will be paid.
Thursday's filing in federal bankruptcy court was approved by Gov. Rick Snyder. The move puts the city on an uncertain path that could lead to layoffs of city workers, the sale of city assets, higher fees and cuts in such services as trash and snow removal.
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