Vallejo Tries to Resolve Bankruptcy

The city council of Vallejo, California just voted on a resolution to end the two-year bankruptcy that the municipality has been fighting against. Located between San Francisco and Sacramento, Vallejo is the most populous city to have filed for bankruptcy in 2008.

Although the five-year "stabilization plan", as Mayor Osby Davis refers to it, calls for a reduction in health care costs, lower benefits for new city workers, and cuts to pension obligations, he believes that "we're doing the best we can with what we have."

As the city emerges from bankruptcy protection it now faces years of tight budgets and the potential of more cuts to essential services. The city is $50 million in debt, for which only $5 million can be set aside right now.

Vallejo is joined by many other cities across the country, like Harrisburg, Pennsylvania, that have been forced to seek bankruptcy protection.

If bankruptcy seems like the only option for your personal or business finances, contact a San Antonio bankruptcy lawyer today to learn more about your options.