STOCKTON’S EXPENSIVE BANKRUPTCY CASE

Stockton’s expensive bankruptcy case. People think of California as wealthy. They imagine beaches, palm trees, and mountains. Most would not believe a city in California would have to turn to a bankruptcy lawyer for help. That is what Stockton, California had to do. The economy rocked the city. The only solution was a bankruptcy filing. The bankruptcy case has been long and expensive. The city filed for Chapter 9 bankruptcy protection 28 months ago. So far, the city has spent almost $16.3 million dollars related to the bankruptcy. Stockton has also budgeted another $25 for future bankruptcy expenses. The city is now hopeful that the bankruptcy judge will approve the city’s exit plan from bankruptcy. If the judge does not approve the exit plan, the bankruptcy will keep going. Even with all the costs associated with the bankruptcy, city officials insist it will be a bargain. The city estimates it will save about $2 billion dollars by filing bankruptcy. Thanks to their bankruptcy attorney, the city is savings billions in restructuring their debt. This includes savings in labor agreements, retiree health care costs, and bills due to the city’s creditors. What Stockton has endured many people can understand. The bills it owed just became too high. Income did not match what was due to creditors. Everyday people suffer the same plight. Loss of a job, hospital bills, credit card bills. Pretty soon the debt cannot be paid. Stockton sought the advice of a bankruptcy lawyer for relief. That is what the bankruptcy code is there to solve. Economic problems that can be solved only through a bankruptcy filing. Once Stockton comes out of bankruptcy, their debts will be less. Their debts can be managed. Stockton is confident it can now pay its bills. It hopefully can start living the California dream again. Rather than worrying about paying its bills. Any person in debt can learn an important lesson from Stockton. If you see no way out of debt, talk to a bankruptcy lawyer. Learn about all your options. Just like Stockton, a sunny future could be right around the corner.