Detroit files for backruptcy

Friday, July 19, 2013 - 2:45pm

Detroit files for bankruptcy; becomes largest city in U.S. history to file Chapter 9.

Detroit has now filed the largest municipal bankruptcy in American History.

The once mighty center of the automotive industry is now caving under decades of economic decline.

And now as the city's fate lies in the hands of a federal judge, the new question is, will this help the 700 thousand citizens of Detroit?

"This is not any recent development. This has been going on far too long and isn't it time to say enough is enough?"

A dwindling population, the decline of the automakers and political corruption are just some of Detroit's woes.

Now as it files for bankruptcy Detroit's workers are bracing for what could happen to their pensions and health care.

"Will this affect pensions? Based on what we know, anything is possible."

"We paid a percentage of our wages every year into that, so it's not something that's being given to us. It's our money."

More than 18-billion dollars in debt, Michigan's governor called bankruptcy the only choice.

"Detroit is broke from a financial point of view, and, more importantly, the citizens deserve better services."

Those services have taken a significant hit.

"When you call the police now, you wonder if they're coming."

Detroit's emergency manager, who took control of the city in March, insists bankruptcy will not change the day-to-day here.

"Services will remain open, paychecks will be made, bills will be paid. Nothing changes from the standpoint of the ordinary citizens' perspective."

Detroit's mayor didn't have a say in the decision but urged understanding.

"As tough as this is, I really didn't want to go in this direction, but, now that we are here, we have to make the best of it."

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