Detroit has become the largest US city to file for bankruptcy in recent years, with debts of at least 15 billion dollars.
The city, which was once a symbol of US industrial power, is seeking protection from creditors, who include public-sector workers and their pension funds.
According to the BBC, Mayor Dave Bing however said that public services will keep running and wages for public workers will be paid.
Michigan state-appointed emergency manager Kevyn Orr asked a federal judge to place the city into bankruptcy protection. If it is approved, he would be allowed to liquidate city assets to satisfy creditors and pensions.
Orr suggested at the time there was a 50-50 chance of the city needing to file for bankruptcy, adding that the city's long-term debt could be between 17 billion dollars and 20 billion dollars.
