July 19th, 2013
10:22 AM ET

Detroit Files for Bankruptcy

The Motor City officially can't pay the bills.

Late Thursday, Detroit filed the largest municipal bankruptcy in American history. Now the fate of the once-mighty center of the automotive industry lies in the hands of a federal judge.

The question is– Will this help the 700,000 citizens of Detroit?

“Detroit's downfall has been decades in the making,” CNN's Poppy Harlow reports. “A dwindling population, the decline of the automakers, and political corruption are just some of Detroit's woes.”

With bankruptcy deemed the only choice, the city’s workers are bracing for what could happen to their pensions and health care.

But Detroit's emergency manager, Kevyn Orr, who took control of the city in march, insists bankruptcy will not change the day-to-day.

Orr says, "Services will remain open, paychecks will be made, bills will be paid. Nothing changes from the standpoint of the ordinary citizens' perspective."

“This is really going to affect most city workers, current and retired, because their pensions, their health care benefits are on the line,” Harlow reports. “They could see dramatic cuts.”

Posted by
Filed under: Money Time • News • Videos
soundoff (One Response)

Post a comment


 

CNN welcomes a lively and courteous discussion as long as you follow the Rules of Conduct set forth in our Terms of Service. Comments are not pre-screened before they post. You agree that anything you post may be used, along with your name and profile picture, in accordance with our Privacy Policy and the license you have granted pursuant to our Terms of Service.