America's Cities Are in Financial Peril

of 72Photo
  • bankruptcy
  • Detroit, Michigan
  • Scranton, Pennsylvania
  • 071312 national banruptcy stockton california
  • Mammoth Lakes, California
  • San Bernardino, California
  • Jefferson County, Alabama

Detroit, Michigan

Following months of setting the groundwork for legal action, the city of Detroit filed for Chapter 9 bankruptcy protection in federal court on July 18. "The filing begins a 30- to 90-day period that will determine whether the city is eligible for Chapter 9 protection and define how many claimants might compete for the limited settlement resources that Detroit has to offer," writes USA Today. The petition will seek protection from the city's creditors and unions that are renegotiating $18.5 billion in debt among other liabilities. (Photo: Spencer Platt/Getty Images)