Sometimes folks, bankruptcy is necessary. For people like you and me. For corporations. For partnerships. Railroads. Airlines. And even cities. Yes, cities, counties and any subdivision of a state.
The San Bernardino Bankruptcy Filing
This past week the city of San Bernardino, California, famed in song and history in the classic hit “Route 66” –which passes through “San Berdoo”– filed for bankruptcy protection. And San Bernardino is certainly not the first municipality to file a Chapter 9 bankruptcy. Within the past couple of weeks, the town of Stockton, California filed Chapter 9, and this past week the city of Mammoth Lakes voted to file bankruptcy. A few years back Orange County, California filed a bankruptcy which was, at the time, the largest municipal bankruptcy ever filed.
Nobody wants to file a bankruptcy, including the city you live in. But often it is simply the best solution. It is, as with everything in life, a weighing of costs and benefits.
San Bernardino isn’t going anywhere. It will resolve its issues in bankruptcy court and move forward.
Should You File Bankruptcy?
Is bankruptcy in your future? I hope not. But if it is, you can take heart in knowing the laws are here to for to assist you, just like they are for San Bernardino. For those unsure, you may wish to visit my article on the warning signs of bankruptcy which explores some of the common scenarios where bankruptcy should be examined as an option.