According to the Los Angeles Times, the city of Stockton California has filed for bankruptcy making it the largest municipal bankruptcy filing in the history of the United States. There is no doubt the entire state of California is in trouble financially and Stockton appears to be the first city in the entertainment state to seek bankruptcy protection. The Wall Street Journal indicated this week that Stockton, with a population of over 300,000 is by the far the largest U.S. city to ever file for Chapter 9. Many residents have criticized the city for not taking the painful but necessary steps over the past 1o years to prevent the city’s financial collapse. It appears Stockton is not alone. Many cities across the nation have been contemplating bankruptcy following the economic downturn beginning a few years ago. Most notably are the cities of Providence Rhode Island, Scranton Pennsylvania (best known from the show The Office), and biggest of them all, Detroit Michigan. If Detroit falls into bankruptcy the ripple effects throughout the mid west and rest of the country could be significant. Previous to the Stockton filing, Birmingham Alabama was the largest city bankruptcy with debts totaling over $4.3 billion.
Bankruptcy in Utah
Bankruptcy on the city level in Utah has not taken hold. While some cities here locally in the beehive state have over spent in recent years, there are no substantial bankruptcies being reported. However, for many individuals and families, bankruptcy may be the best option. Everyone knows the number of bankruptcies over the past 5 years have increased quite a bit. However, the numbers seem to be leveling off and many people are getting back on their feet. However, if you or your family is not able to meet your financial obligations, you should call our office for a free consultation and to discuss your options now.
Utah Bankruptcy Attorney
For more information regarding the bankruptcy process in Utah, speak with a Utah bankruptcy attorney in our office today. We provide free consultation over the phone or in our office. We have helped numerous families in Salt Lake, Provo, Ogden, and St. George get back on their feet. Call today at 801.413. 1753. We look forward to your call.