The city of Detroit, Michigan, filed for Chapter 9 bankruptcy on July 18, 2013. It is the largest municipal bankruptcy filing in U.S. history by debt, estimated at $1820 billion, exceeding Jefferson County, Alabama's $4-billion filing in 2011. Detroit is also the largest city by population in U.S. history to file for Chapter 9 bankruptcy, more than twice as large as Stockton, California, which filed in 2012. While Detroit's population had declined from a peak of 1.8 million in 1950, its July 2013 population was reported by The New York Times as a city of 700,000. Detroit's bankruptcy filing followed a declaration of financial emergency in March 2013 that resulted in Kevyn Orr being appointed as "emergency manager" of the city by Michigan Governor Rick Snyder. Orr's subsequent negotiations sought to get creditors to willingly "take a haircut" on Detroit's debt, and were ultimately unsuccessful.On July 19, 2013, Judge Rosemarie Aquilina of the Thirtieth Judicial Circuit Court of Michigan ruled the bankruptcy filing by Detroit violated Article IX, Section 24, of the Michigan Constitution and ordered Governor Rick Snyder to withdraw the filing immediately. On July 23, an appeals court stayed the circuit court ruling pending future rulings on Michigan Attorney General Bill Schuette's appeal. On July 24, the Bankruptcy Court added its own, federal stay of the state court proceedings. On August 2, the bankruptcy court set a hearing date of October 23, 2013, for trial on any objections to the city's eligibility for Chapter 9 bankruptcy, and March 1, 2014, as the deadline for the city to file a bankruptcy plan. After a nine-day trial on eligibility, the Bankruptcy Court on December 3, 2013, ruled Detroit eligible for Chapter 9 on its $18.5 billion debt. On June 3, 2014 the Michigan Legislature passed a package of bills to help Detroit avoid further bankruptcy proceedings. On the same day, Governor Snyder pledged to sign the package of bills.After a two-month trial, Judge Steven W. Rhodes confirmed the city's plan of adjustment on November 7, 2014, paving the way for Detroit to exit bankruptcy. Creditors and insurers were expected to absorb losses totaling $7 billion, with creditors receiving between 14 and 75 cents on the dollar.

The government of Detroit, Michigan is run by a mayor, the nine-member Detroit City Council, the eleven-member Board of Police Commissioners, and a clerk. All of these officers are elected on a nonpartisan ballot, with the exception of four of the police commissioners, who are appointed by the mayor. Detroit has a "strong mayoral" system, with the mayor approving departmental appointments. The council approves budgets, but the mayor is not obligated to adhere to any earmarking. The city clerk supervises elections and is formally charged with the maintenance of municipal records. City ordinances and substantially large contracts must be approved by the council.The 2012 Charter added political bodies to council districts called Community Advisory Councils. They are created by the circulation of petitions by residents. In March 2014 The Detroit City Council passed an ordinance that formalized the directive given in the City Charter. Members of the Seventh District CAC were elected in the 2016 general election on November 8. In October 2019 a local activist submitted petitions to make District 4 Detroit's second CAC. Members were elected to it in the 2020 general election.Municipal elections for mayor, city council and city clerk are held in years following presidential elections (such as 2013, 2017 and 2021).In 2018 the people of Detroit voted to revise the city charter, and elected a Charter Commission for that purpose. The revised charter could substantially change the structure of the government of Detroit if it is approved in the 2020 election.