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
Chapter 7 Bankruptcy
If you go for Chapter 7 bankruptcy, you may have a lot or all of your debts canceled. On the other hand, you might need to sell some or all ...
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
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 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
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
How to file for Bankruptcy ?
If you are one of such victim facing huge debt, and searching information desperately for the processes of "How to file for bankruptcy ? ", you are about to find ...
READ MORE
Filed For Chapter 7 Bankruptcy
Looking for Chapter 7 or Chapter 13 bankruptcy lawyer ? Find a bankruptcy lawyer for free we helped many bankruptcy cases like yours.   I am 24 years old, I am a ...
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
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
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
Chapter 7 Bankruptcy
Affordable Chapter 7 legal services
Bankruptcy
Declaring Bankruptcy. Good or Bad?
Baha Mar Resort Enters Bankruptcy
How to file for Bankruptcy ?
Filed For Chapter 7 Bankruptcy
Need To File Bankruptcy
How to file for Chapter 11 bankruptcy?
Bankruptcy courts