Posts Tagged ‘bankruptcy’

CA take note: MI state judge tests federal bankruptcy law

Sunday, July 21st, 2013

For municipal bankruptcy, all eyes across the nation now turn to Detroit. The latest: Michigan Circuit Court Judge Rosemary Aquilina ordered Detroit's bankruptcy filings be withdrawn because they violate state law guaranteeing that pensions must be paid to public employees. The bankruptcy fil...

CA take note: Detroit bankruptcy could slash pensions 90%

Thursday, July 18th, 2013

July 18, 2013 By John Seiler Detroit declared bankruptcy today. For California, here are the takeaways from the Detroit News report: "A bankruptcy judge could trump the state constitution by slashing retiree pensions, ripping up contracts and paying creditors roughly a dime on the dollar for unsec...

Is Adelanto the next CA city to go belly up?

Wednesday, July 3rd, 2013

July 3, 2013 By Wayne Lusvardi The pathway into municipal budget distress is not the same for every city in California.  No known city in California has attempted to cut its general fund budget nearly in half. But that's what Adelanto is trying to do by cutting its budget from  $5.5 to $2.6 mil...

Lawmaker wants president to discharge student loan debt

Wednesday, May 8th, 2013

May 8, 2013 By Katy Grimes SACRAMENTO -- In 2006, a major rewrite of the federal bankruptcy law allowed for federal student loans to be dischargeable. Prior to 2006, student loans, along with taxes, were always required to be paid back in bankruptcy court. Now, Assemblyman Bob Wieckowski, D-Fremo...

Jay Leno on Stockton bankruptcy

Wednesday, April 10th, 2013

April 10, 2013 By John Seiler Here's Jay Leno Monday night on the Stockton bankruptcy: "Stockton is so broke, the founding father now is demanding a paternity test. "Stockton is so broke, their meth labs just give out Sudafed. They can't afford to make meth. "Stockton is so broke, their 99-Cent st...

Has California been saved?

Monday, April 8th, 2013

April 8, 2013 By Steven Greenhut SACRAMENTO -- Ever since California’s voters approved the Prop. 30 sales- and income-tax increase on the November ballot, liberal commentators have been gloating about the resurgence of the Golden State after many years of predicted doom and gloom. Their evidence...

Bankruptcy judge rejects CalPERS’ claim to protected status

Wednesday, April 3rd, 2013

April 3, 2013 By Chris Reed As John Seiler pointed out here Tuesday, Monday's court ruling by U.S. Bankruptcy Judge Christopher Klein isn't seen as definitive. Yes, the city of Stockton can proceed with its bankruptcy filing. No, Klein doesn't yet agree with the city's plan to only short bondhold...

Judge: Stockton can go belly up

Tuesday, April 2nd, 2013

April 2, 2013 By John Seiler It’s official: The city of Stockton is bankrupt. On April 1, U.S. Bankruptcy Judge Christopher Klein ruled that Stockton's bankruptcy can proceed. "It's apparent to me the city would not be able to perform its obligations to its citizens on fundamental public safety ...

Reuters bests state media at covering San Bernardino’s collapse

Monday, April 1st, 2013

April 1, 2013 By Chris Reed If you had to fashion a nut graph to explain why so many local California governments are in deep fiscal trouble, here's my nominee for an honest generic overview: Over the past 20 years, the city/county/district's political leaders have often acceded to union demands ...

Stockton bankruptcy judge’s pedigree, history offer hope

Wednesday, March 27th, 2013

March 27, 2013 By Chris Reed The stakes are immense in the four-day trial in Sacramento's federal bankruptcy court this week. The New York Times frames the issue well: "Wall Street is taking America’s biggest pension fund to court this week, for a long-awaited battle over who takes the losses wh...