Cities filing for bankruptcy protection



Recently, two fairly large cities in California filed for bankruptcy protection. The city of Stockton (a city of 292,000 people) filed for bankruptcy protection in late June. In early July, the city of San Bernadino declared a fiscal emergency and filed for bankruptcy. Here is an article about the filings: 

When cities file for bankruptcy

A few years ago, another California city, Vallejo filed for Chapter 9 bankruptcy protection. This process allowed Vallejo officials to negotiate with their creditors so that the city could get their financial house in order. Orby Davis, then Vallejo mayor, when asked if filing for bankruptcy was worth it stated “That question suggests we had an option. It was filing bankruptcy or not existing as a city any more.” National Public Radio recently featured a conversation with former interim Vallejo city manager Phil Batchelor talked about what happens to workers and services when a city goes bankrupt. (listen to the conversation here). 

Bankruptcy is not only a tool to eliminate debt, but also can be used to renegotiate your debts to obtain a lower interest rate, catch up on past due mortgages, and completely remove second and third mortgage liens on your home. Many times people do not desire to get out of all their debt- but just make it a little easier to handle. Many individuals and families situations are not all that different from the City of San Bernadino. You certainly would like to pay your debts- they just need to be a little easier and more realistic if you are ever going to get back on your feet again. 

At our firm, we specialize in Chapter 13 and Chapter 7 bankruptcy and offer free consultations to see if it is right for you. What do you have to lose? 




About Jason

My name is Jason Richards, and I am an attorney in Northern Utah. I run my own practice and have offices in Ogden and North Salt Lake. I grew up in Ogden and attended local public schools. I graduated from the University of Utah Law School with a juris doctorate degree. My practice primarily centralizes on bankruptcy and debt collection. I also specialize in criminal defense and other areas of civil litigation. I represent clients who are suffering from crushing debt that seems hopeless. I have helped many people file for relief under Chapter 7 and Chapter 13 of the United States Bankruptcy Code. I have also helped dozens of clients renegotiate their debt and defend them in debt collection actions with ruthless creditors. If not dealt with promptly and aggressively, creditors will achieve their goal to collect. Bankruptcy is certainly not the solution for everyone. Everybody's situation is different. The best way for you to determine if it is right for you is by consulting with a local bankruptcy attorney. Bankruptcy has helped millions of Americans receive a fresh start and financial independence.
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2 Responses to Cities filing for bankruptcy protection

  1. Daniel Stone says:

    Jason, I like your bankruptcy blog. I would love to be added to your blogroll. Daniel

    Stone Law Firm, LLC
    Daniel Stone

  2. Nice post of blog atty jason. for your blog i would like to share a little about filing. uhm understand first the cases before filing, think many time or a million times for you to decide what are you filing for. If there is anything you can do to avoid it, try that solution first. Consider options like financial coaching, credit counseling, loan refinancing or modification or credit card consolidation to stop the financial bleeding. Before you file bankruptcy, it may be wise to look into how to avoid bankruptcy and your alternatives. Hire that can help you evaluate your situation and direct towards the best course of action a lawyer before filling. Attorney agencies with experience in the field are your best bet.

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