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Once-mighty Motor City files for bankruptcy

July 18, 2013 • National News


In a Dec. 12, 2008 file photo, a pedestrian walks by graffiti in downtown Detroit. On Thursday, July 18, 2013 Detroit became the largest city in U.S. history to file for bankruptcy when State-appointed emergency manager Kevyn Orr asked a federal judge for municipal bankruptcy protection. (AP Photo/Carlos Osorio, FILE)

DETROIT (AP) — Once the very symbol of American industrial might, Detroit became the biggest U.S. city to file for bankruptcy Thursday, its finances ravaged and its neighborhoods hollowed out by a long, slow decline in population and auto manufacturing.

The filing, which had been feared for months, put the city on an uncertain course that could mean laying off municipal employees, selling off assets, raising fees and scaling back basic services such as trash collection and snow plowing, which have already been slashed.

“Only one feasible path offers a way out,” Gov. Rick Snyder said in a letter approving the move.

The filing marked a turning point for city and state leaders, who must now confront the challenge of rebuilding Detroit’s broken budget in as little as a year.

Kevyn Orr, a bankruptcy expert hired by the state in March to stop the city’s fiscal free-fall, said Detroit would continue Login to read more

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