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 approximately $2 billion debts, long term debts and other monetary turbulence. The only solution which the inhabitants trusted on was filing of Chapter 9 under the bankruptcy law. There were other steps taken by the community along the line. So, there was fabrication of new labor agreements, novel settlement with retirees and making it work with the largest creditors.

However, the impact of the same on the bondholders seems devastating. There has been a weakening of the claims of the bondholders. So, in here the pensioners will be in the position to bask in a better financial sustainability as compared to the bond holders. This definitely came as a surprise to the general public as well as the bondholders. It is because, in accordance with the legal proceedings in the initial state, it is the pension which can be impaired in the bankruptcy cases. So basically the investors are forced to take less than they owed. This implies that Calpers does have to deal with the consequences associated with it.

sometimes

In fact, the situation should have been different. In accordance with the federal law the priority in case of filing of Chapter 9 bankruptcy should have landed towards secured creditors in a hassle free manner. Hence, it will be interesting to witness with regards to the future of similar chapter 9 filing of bankruptcies.

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
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
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
What is involved in filing for bankruptcy
People who are having problems paying their financial obligations sometimes consider bankruptcy to acquire comfort from selection initiatives, remove some or all of their financial obligations or rebuild their debt ...
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
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
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
Chapter 7 Bankruptcy
Affordable Chapter 7 legal services
Need To File Bankruptcy
Chapter 11 protection in favor of Molycorp Inc.
What is involved in filing for bankruptcy
Chapter 7 bankruptcy lawyer
Bankruptcy
declaring yourself bankrupt?
How to file for Bankruptcy ?
Filed For Chapter 7 Bankruptcy