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
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
Bankruptcy
Bankruptcy laws are made for the help of the people who can no longer pay their creditors get a chance to pay that is by liquidating assets or by creating ...
READ MORE
declaring yourself bankrupt?
When you are neck deep in your debts and there are creditor’s threats looming and lurking around ready to take your assets and leave you with nothing, you may need ...
READ MORE
Declaring Bankruptcy. Good or Bad?
Should You Declaring Bankruptcy – this seems to be a tough question to be answered especially in the present situation. Most of the people believe that this is the best ...
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
Chapter 11 protection in favor of Molycorp Inc.
If a company or an organization is unable to repay its creditors or keep its business alive, the debtor under the norms and rules can file for the Chapter 11 ...
READ MORE
How Chapter 11 helped in Formula one
The team Marussia has filed for the equivalent of Chapter 11 bankruptcy. This step of the team was preceded by another Formula One Company Caterham in less than a week; ...
READ MORE
bankruptcy court
The United States is among the first country in the world that has the bankruptcy courts. They are first country to have a humane view of the person who has ...
READ MORE
Declaring bankruptcy
Declaring bankruptcy is one of the many options a debtor can perform when he can no longer meet the terms of his financial obligations to his creditors. In the United ...
READ MORE
File Bankruptcy
Situations brings you financial crisis and break you upto bankruptcy. You might need to stop a garnishment, pay your debts, may be lost your job and have to support child ...
READ MORE
Need To File Bankruptcy
Bankruptcy
declaring yourself bankrupt?
Declaring Bankruptcy. Good or Bad?
How to file for Chapter 11 bankruptcy?
Chapter 11 protection in favor of Molycorp Inc.
How Chapter 11 helped in Formula one
Bankruptcy courts
Declaring Bankruptcy
File Bankruptcy