The city of Detroit has filed for Chapter 9 bankruptcy, making it the largest U.S. city ever to do so, the New York Times reports. The city's emergency manager, Kevyn D. Orr, has estimated the city's debt at somewhere between $18 and $20 billion.
Detroit had once claimed the title of the country's fourth-most-populous city, due in large part to its legacy as the soul of the automobile industry. In April, Fast Company senior writer Chuck Salter explored a young community of entrepreneurs who are working to revitalize the city, the population of which dropped 25% between 2000 and 2010.
The unemployment rate in Detroit is currently at 18%, more than twice the national rate, and nearly a third of households—who average $27,862 in annual income—live in poverty.
[Image: Flickr user Rob Zand]