Detroit Bankruptcy


Detroit, Michigan, the historic epicenter of US automotive manufacturing, was once a beacon of industrial prosperity. The "Motor City" was synonymous with automative giants, such as GM, Ford and Chrysler. In recent decades, however, Detroit has seen significant decreases in both population and industry. Largely attributed to the collapse of the automotive industry, Detroit's decline has left the city replete with delinquent properties and struggling with ever-growing debt. Detroit's struggles culminated in the city declaring a financial emergency and subsequently filing for Chapter 9 bankruptcy on July 18, 2013, making Detroit the most populous city in United States history to declare bankruptcy.

Detroit's Chapter 9 filing initially resulted in significant litigation regarding the city's eligibility for bankruptcy. While Detroit was later found to be eligible, additional litigation continues to arise from disagreement over how to equitably and responsibly approach recovery.


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