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Detroit bankruptcy explained in 60 seconds

19 July 2013 Last updated at 10:40 BST

Detroit has become the largest city in the United States ever to file for bankruptcy.

With population numbers and tax receipts plummeting, the motor city has racked up debts of at least $18bn (£12bn).

But what does it actually mean when a city goes bust?

Robert Miller from BBC Radio 5 live's Wake Up To Money explains Detroit's situation in 60 seconds.