Move stops a barrage of lawsuits and allows the city breathing room, city manager says
SAN FRANCISCO — Stockton, California, became the largest city to file for bankruptcy in U.S. history on Thursday, after years of fiscal mismanagement and a housing market crash left it unable to pay its workers, pensioners and bondholders.
The filing by the city of 300,000 people followed three months of confidential talks with its creditors aimed at averting bankruptcy.
“We are now a Chapter 9 debtor,” Marc Levinson, the lawyer who filed the city’s voluntary petition in the Eastern District of California, in Sacramento (Case 12-32118) told Reuters.
Pleadings in support of Stockton’s eligibility for Chapter 9 bankruptcy will be filed on Friday, Levinson said.
Stockton, home of the second highest foreclosure rate in the nation. And the winner of Forbes’ “America’s Most Miserable City” not once but twice! We offer this as a cautionary tale to any of you considering buying a house that is NOT in the Real Bay Area. When your definition of “Real” is so flexible that it includes the 209 area code, you have officially drunk the Realtard Kool-Aid.
Stockton now has to open their books to a Federal Judge, and we are going to open this thread to anything you wish to discuss. Did you visit any Open Houses in Stockton this weekend?