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
Filing For Bankruptcy Due To Financial Difficulties
Should you file bankruptcy or not ? Send your case to bankruptcy lawyers for free consultation, Our online pool of lawyers helped many ( look below ) and help you ...
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
Affordable chapter 11 legal services
There are a number of Bankruptcy laws under the United States and Chapter 11 is one of the Bankruptcy Code which governs the process. It is eligible for the business ...
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
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
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
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
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
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
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
Filing For Bankruptcy Due To Financial Difficulties
Declaring Bankruptcy. Good or Bad?
Affordable chapter 11 legal services
Declaring Bankruptcy
Filing for Bankruptcy without a Lawyer
Affordable Bankruptcy
Chapter 11 protection in favor of Molycorp Inc.
Bankruptcy filling without an attorney
How Chapter 11 helped in Formula one
How to file for Chapter 11 bankruptcy?