On July 18, 2013, the City of Detroit filed for Chapter 9 bankruptcy. It is the largest municipality in the U.S. history to file for bankruptcy. The filing also significant because its debt estimated at $18 to 20 billion, way more than the bankruptcy filing by the Jefferson County, Alabama in 2011 at $4 billion.
Detroit is a prime example of an urban decay. Its population is on the decline. In 1950 its population peaked at 1.8 million and current population to be around 700,000 according to the 2010 U.S. Census. Abandoned homes, vacant lots and unlit streets have become more common in Detroit recently. Besides these what else led to the bankruptcy filing? After months of negotiations with pensions, creditors and unions, it failed to come to an agreement on many issues. Unfunded pensions for 30,000 strong current and retired employees are estimated at $9.2 billion. Its tax base is shrinking rapidly. Not only its record keeping is shoddy but also many property owners are not paying property taxes. More than 33 percent of the 140 square miles of the City territory are vacant. Unemployment estimated at 18 percent, one of the highest among cities in the country.