Tuesday, April 2, 2013

Stockton, California Entering Bankruptcy

Everyone from Stockton, California will no feel a financial fallout for years to come now that a federal judge ruled to allow the city of Stockton to become the most populous city in America to enter into bankruptcy.

Stockton is a city of nearly 300,000 people, it has tried to restructure some debt by slashing its employment, renegotiating labour contracts, and cutting its health benefits for workers. 

The city crime rate is among the highest in America and the Police Department only responds to the emergencies in progress because it's been scaled down. 

When making the ruling on Monday, US Bankruptcy Judge Christoper Klein disagreed with creditors who had argued that Stockton failed to pursue all avenues for straightening out its financial affairs. 

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