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Detroit Just Became The Largest City Ever To File For Bankruptcy In The U.S.

Detroit Just Became The Largest City Ever To  File For Bankruptcy In The U.S.

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]CC