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That created the largest Chapter 9 filing in the U.S., although it"s hardly alone at the moment. In the past four years, 38 municipalities have filed for bankruptcy protection with federal courts. The largest of these before Detroit, Jefferson County in Alabama two years ago, involved a default on $1.7 billion in obligations. That edged out Orange County, California, which briefly entered into bankruptcy protection in 1994 as a result of corruption, with $1.4 billion in obligations due to a collapse in the derivatives market. Detroit"s bankruptcy dwarfs all of them, at an estimated $18 billion to $20 billion.
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