City of Stockton Declares Bankruptcy

In what many view as the most recent development in our nation's economic downturn, the City of Stockton, CA has announced that it is filing for bankruptcy under Chapter 9 of the United States Bankruptcy Code. The statement issued on June 28, 2012 mentions the City's intention to "get our fiscal house in order and protect the safety and welfare of our citizens." The city of nearly 300,000 residents has evidently sustained budget shortfalls great enough so as to make it impossible to stay current on its financial obligations, and will use Chapter 9—which specifically applies to town, cities and other municipalities—to secure protection from creditors and get back on a stable footing.

Just as the City of Stockton has a legal right to declare bankruptcy, so may you be eligible to seek this powerful legal protection. The Federal Government secures the right of an individual, family, corporation or municipality to discharge debts under certain circumstances, making it possible to achieve a fresh start. If you are determined to get out of debt and want to explore your options for filing under Chapter 7 or Chapter 13, contact an attorney at Matthews Law Firm. Serving clients in Los Angeles in a variety of debt relief strategies, the firm offers a free case evaluation and can begin working on your case today!