Just like the organization, companies and individual can declare themselves bankrupt, so does a municipality can. The basic difference lies in the chapter, which will be filed to handle the proceedings. Chapter 9 bankruptcy provides protection to the municipality and its creditors by fabricating a plan which solves their debt issues. The municipality inculcates cities, townships, school and districts.

A very simple explanation to protection being pursued will be able to be availed by the Stockton Bankruptcy case. The open letter of the community has been a valuable source of this article.

It was on June 28, 2012 that the city of Stockton filed a petition for protection under the Chapter 9 of the bankruptcy act. And, after almost 3 years of the law proceedings, on February 25, 2015 the city has been granted the bankruptcy exit plan as accepted. This is being witnessed as a new birth of the city.

Yes We Can

There was the time, when the community was under $2 billion debt. The debt was faced due to the labor agreements, financial obligations and other long term debts. As it happens with Chapter 9 bankruptcy cases, there is no wipe out of debts. In fact, the solution is initiated taking into consideration all the society members. A plethora of steps has been planned which include revised labor agreements with employees, elimination of free retiree health care and pursuing reasonable agreements with the largest creditors. The result is preserving the city’s future as a sustainable city.

Related Posts
Baha Mar Resort Enters Bankruptcy
Chapter 11 bankruptcy has been witnessed to provide an organization a relief from the heavy debts. Hence, it was not a surprise that the mega resort Baha Mar which was ...
READ MORE
Chapter 7 bankruptcy lawyer
Just a few days ago, my friend Larry declared himself bankrupt. Things had not been going well for him since Sarah and he found themselves overwhelmed with the car and ...
READ MORE
How to file for Chapter 11 bankruptcy?
The gorgeous $3.5 billion paradisiacal mega resort Baha Mar is in the news again. Since its construction initiated, there are travelers waiting for it to start. However, it seems this ...
READ MORE
Affordable Bankruptcy
Finding bankruptcy lawyers is easy now, submit your case details here and we will connect you to bankruptcy lawyers the way we did for following cases.   I have several payday loans ...
READ MORE
Bankruptcy filling without an attorney
Within the 2005 legal guidelines, customers have to choose credit score guidance before submitting a new individual bankruptcy request. Consumers are also subjected to an easy method check, to determine ...
READ MORE
Need To File Bankruptcy
Chapter 7 bankruptcy can be filed easily depending upon your case. Also charges to file your case can go from free to higher again depending up the case. You can ...
READ MORE
Affordable Chapter 7 legal services
Chapter 7 bankruptcy is a process of liquidation. In here the non-exempt assets of debtor are sold by the trustee and there are particular norms of the code which needs ...
READ MORE
Stockton exit imposed losses on bondholders
The date of February 25, 2015 witnessed a new chapter in the life of the Stockton community. It was this day when the bankruptcy exit plan became effective. There were ...
READ MORE
Filing for Bankruptcy
Hiring a lawyer to file for bankruptcy can be expensive, since the lawyer’s fees comprises of a huge chunk of bankruptcy expenses. However, filing for bankruptcy can be done by ...
READ MORE
How to deal with your business debts
Around 90 percent of businesses fail before they even reach ten years. And in this challenging economy, it would be normal if your business would dwindle down to failure. This ...
READ MORE
Baha Mar Resort Enters Bankruptcy
Chapter 7 bankruptcy lawyer
How to file for Chapter 11 bankruptcy?
Affordable Bankruptcy
Bankruptcy filling without an attorney
Need To File Bankruptcy
Affordable Chapter 7 legal services
Stockton exit imposed losses on bondholders
Filing for Bankruptcy without a Lawyer
How to deal with your business debts