In recent weeks, three California cities have filed for bankruptcy: Stockton, in the Central Valley; Mammoth Lakes, near Yosemite and the Sierras; and San Bernardino, in the sprawling Inland Empire east of Los Angeles. If you live there, should you get out of town? And if you don't live there, should you worry that your city is next?
In short: no, and no. Here's why.
Read the rest of the article at The Huffington Post
“Bankruptcy should be the beginning of a solution to a city's financial problems; it is not itself the problem.” – this is quite true. Declaring bankruptcy actually entitles one to several protective provisions that are designed to help the bankrupt party repay its debts in due time. If anything, bankruptcy is an avenue to get out of a financial slump. Keeping that in mind is key to recovery. If you treat bankruptcy like it’s the problem, you will have a hard time recovering.
ReplyDeleteAllan Morais