The recession has affected everyone, from regular people to corporations to cities. The Los Angeles Times is reporting that Stockton, California is even closer to bankruptcy. The LA Times reports:
The city of Stockton moved a step closer to becoming the nation’s largest city to declare bankruptcy, authorizing the city manager to file for Chapter 9 protection from creditors.
A 6-1 vote after a tense 4 1/2-hour public meeting Tuesday directed City Manager Bob Deis to file if the current mediation process fails. On March 27, Stockton stopped payments to creditors and entered a confidential mediation process under AB 506, a California law designed to slow municipal bankruptcies by forcing all parties to the table. Under this law, the bargaining period has a 60-day limit, unless all parties agree to extend it for another 30 days.
The city and its creditors agreed to extend negotiations through June 25.
Deis said he wants to be ready to go to bankruptcy court the next day if talks fail.
Hopefully the economy is on the rebound and stories like this one will be in the past. If the recession has affected you and you are considering filing for bankruptcy contact a bankruptcy attorney to learn about bankruptcy.