The city of Stockton is now filing for bankruptcy. What can consumers learn from the bankruptcy filing of a city? We can take a look at how the city’s dealings with their creditors finally pushed them into bankruptcy. Stockton went through countless hours of meetings with their creditors to see if they can negotiate payment plans, but their creditors were not willing to negotiate to levels that would keep the city out of insolvency. Since the creditors were not willing to negotiate, the city was forced into bankruptcy as their best option.
The bankruptcy scenario is similar to what many people are going through. People with real estate and foreclosure issues could be are an excellent comparison. When consumers try to negotiate with banks to stay in their home, they are often in limbo awaiting a response from the bank to negotiate and eventually facing a foreclosure trustee sale where the home would be lost. If your bank as your creditor is not willing to negotiate with you, you need to find another solution to the problem. In Stockton’s scenario, were unable to deal with their creditors. So, they turned to bankruptcy as the best solution to get out of the debt they were dealing with. Just as many consumers did, the city worked hard to cut back budgets and spending to try and deal with creditors, but were not able to get cash flow levels to be able to pay their creditors. If you are in a similar situation, bankruptcy may be the best solution for you to look find relief of your debts instead of facing wage garnishments, bank account levies, or liens on your home.
If we you are interested in finding a low cost bankruptcy attorney in Riverside or Orange County, contact Bankruptcy Law Professionals at 855 257-7671. We offer free consultations for you to learn about bankruptcy directly from an experienced attorney.
