The answer is yes. But how could a government entity apply for bankruptcy protection? There is a specific chapter of the Bankruptcy Code that allows a city or county to file for bankruptcy protection just like an individual or corporation, Chapter 9. States, such as California, cannot file for bankruptcy protection. Contact our local Oakland bankruptcy attorney for more information about Chapter 9 bankruptcy cases.
The Oakland issue is very well known in California these days. After years of funding cuts from the State of California, reductions in Alameda County tax assessments, generous payouts and retirement packages for employees and their families combined with an overall increase in the cost of providing services we rely on Oakland residents finding themselves with a budget deficit. millions of dollars. The State of California alone is short on a budget of more than ten billion dollars. The budget deficit for the State of California is more than the total budget for most states in the United States. Schedule a free consultation today with our San Jose bankruptcy attorneys and find out if bankruptcy is right for you.
Orange County filed for bankruptcy as the largest single city when it filed in 1994 and lost $1.6 billion. Orange County’s bankruptcy is notable given the scale of the financial crisis and what led to the county having to file for bankruptcy protection. The treasurer is an elected official and has held that position for more than twenty years. Unfortunately treasurers invest the funds raised in Orange County in risky investments and generate high returns to fund their general fund. Eventually the house of cards came crashing down and the biggest single city bankruptcy was filed.
Ryan C Wood