The city of Detroit filed for bankruptcy last Thursday, after billions of dollars in debt created a cycle of debt that was impossible to get out from. Athough several large cities such as Birmingham, San Bernandino (which many consider a suburb of Los Angeles), and Harrisburg, Detriot has now become the largest city to file for bankruptcy in US History. The bankruptcy petition is seeking protection from creditors and unions who are seeking reimbursement for the city's $18.5 billion debt. . 

Michigan Gov. Rick Snyder said, "The fiscal realities confronting Detroit have been ignored for too long. I'm making this tough decision so the people of Detroit will have the basic services they deserve and so we can start to put Detroit on a solid financial footing that will allow it to grow and prosper in the future." He continued, "This is a difficult step, but the only viable option to address a problem that has been six decades in the making."

Governor Snyder was required to write a letter granting state approval for the filing. 

In the letter, Snyder said, "It is clear that the financial emergency in Detroit cannot be successfully addressed outside of such a filing, and it is the only reasonable alternative that is available."

Intially,The city plans to restructure the city's debt by obligating much less than what is old, but when the plan failed in June, a move was made to file for bankruptcy. 

Snyder also said, "I have reached the conclusion that this step is necessary after a thorough review of all the available alternatives, and I authorize this necessary step as a last resort to return this great City to financial and civic health for its residents and taxpayers. This decision comes in the wake of 60 years of decline for the city, a period in which reality was often ignored."