With its bankruptcy filing Thursday, Detroit became the largest municipality in the United States to seek Chapter 9 protection.
As Scott reported, the city is saddled with $18.5 billion in debt.
Today, we ask, what happens next?
— CNN reports that Michigan Gov. Rick Snyder said today "should be a regular day." The lights won't be turned off, and city services should continue. Snyder said that, perhaps ironically, future city services may improve because the city is no longer burdened with what he called "legacy costs."
"I know many will see this as a low point in the city's history," he told CNN. "If anything, this gets us on the path towards improved services."
— As for what happens on the legal side: The Associated Press says because Detroit is such a massive bankruptcy, the case "could take years to resolve."
First, a bankruptcy judge has to approve Detroit's request. Then:
"... city assets could be liquidated to satisfy demands for payment. The city would propose a reorganization plan. The wide-ranging plan could include anything from selling assets, layoffs, changing union contracts and more. Then, the city would need the support of creditors to emerge from bankruptcy."