Detroit bankruptcy

Detroit filed for bankruptcy in July 2013, making it the largest U.S. city to do so at that time. The city faced financial turmoil due to factors like declining population, decreased tax revenue, and high debts, leading to over $18 billion in liabilities. Bankruptcy allowed Detroit to restructure its debts under federal protection, aiming to stabilize finances and restore services. The process included negotiations with creditors, pension adjustments, and plans for revitalization. In late 2014, Detroit emerged from bankruptcy, making significant changes to its governance and finances to avoid future crises.