Exclusive: Bankrupt San Bernardino has Paid $6 Million Legal Fees, Millions More ExpectedDecember 3, 2014 – In The News
Michael Sweet was quoted in the Reuters article, “Exclusive: Bankrupt San Bernardino has paid $6 million legal fees, millions more expected.” Full text can be found in the December 3, 2014, issue, but a synopsis is below.
Since declaring bankruptcy in 2012, San Bernardino, California, has run up legal costs of more than $6 million. The city is expected to have millions more in fees before exiting Chapter 9 protection, highlighting the large cost cities face when choosing to resolve their debts by declaring bankruptcy.
News of San Bernardino's legal costs comes as Detroit faces court-ordered mediation sessions to resolve more than $140 million in professional fees billed in its Chapter 9 case.
Michael Sweet, a Fox attorney not involved with the Stockton or San Bernardino cases explains that "it's expensive to be broke. Sometimes there is no other option, but there are so many reasons where trying to do a restructuring outside of bankruptcy makes sense for a city, from the costs, the public nature of it, the time it takes and the stigma."