Posts Tagged ‘Bankruptcy’
With a population of nearly 300,000 people, the city of Stockton has now become the most populous city to file for Bankruptcy in the United States. On Monday, a judge accepted Stockton’s application for bankruptcy, which would allow it to start Chapter 9 proceedings.
According to US Bankruptcy Judge Christopher Klein, “It’s apparent to me the city would not be able to perform its obligations to its citizens on fundamental public safety as well as other basic government services without the ability to have the muscle of the contract-impairing power of federal bankruptcy law.”
Creditors are upset with this decision because Stockton will most likely not have to pay their debts back in full. This case is being heavily scrutinized because it could set a precedent for other cities to follow.
CNBC has more about the Stockton Bankruptcy Here.