They would be the largest city to declare Chapter 9 bankruptcy in U.S. history.
Stockton, CA (PRWEB) July 01, 2012
Recently the city of Stockton, California announced, as reported by WSJ, that financial conditions in the city were worsening and that bankruptcy may be a solution to their difficulties. In the case that Stockton, California does declare bankruptcy, they would be the largest city to declare Chapter 9 bankruptcy in U.S. history and the consequences of this action, although still highly unpredicted, are certain to possibly be extremely tumultuous. The effect is forecasted to be felt heavily by citizens and officials, but especially by investors who hold bonds in the city of Stockton, California. It is highly uncertain what long-term effect a possible city-wide Chapter 9 bankruptcy will have on bonds for the city of Stockton; however, it is a concern that interest rates on the bonds will spike to unsustainable levels as investors panic and demand a higher return for purchasing bonds that are underwritten by a city with a now-higher risk factor. As more and more questions are raised about the financial stability and future of Stockton, California, investors across the state and country are concerned about their investments and Stockton’s ability to make good on its loans.
As a result of the recent financial crisis and credit meltdown, bankruptcy has become an all too common crisis for corporations, individuals and governments alike. With bankruptcy cases ranging from small national governments to some of the largest corporations in the world such as Lehman Brothers to countless individual personal bankruptcies across the country, it is no surprise that there are many out there who need a bankruptcy lawyer. And the task of finding the best bankruptcy attorney can sometimes be a challenging one. As a result of this challenge, many have been turning to an increasingly popular resource site to find a bankruptcy lawyer called http://Need-Bankruptcy-Lawyer.com. The free legal resource offers background information on law firms across the country who have a solid track record and can best assist with handling the intricacies of a bankruptcy case.