Stockton, California Enters BankruptcyApril 2, 2013 – In The News
Michael Sweet was interviewed on Capital Public Radio discussing the recent ruling in the Stockton, California bankruptcy case.
Michael explains that the city of Stockton “got their ticket punched” and can now go through the process of seeing if they are able to have a bankruptcy plan approved by the judge. The plan will propose payment schedules to creditors and also explain the details of how the city will get out of bankruptcy.
Michael advises that this ruling will have reverberations in many cities across the country in similar positions. As costs for pension plans and healthcare rise and many revenues are either decreasing or remaining stagnant, many cities are having trouble meeting their initial promises for employees.
Michael believes with no appeals the bankruptcy plan should take between six months and a year. If there are appeals involved in the case, there is no telling how long it could span.