A federal judge has ruled that Stockton is eligible for bankruptcy protection, making it the largest city in the United States to enter bankruptcy. The judge rejected claims by the city’s creditors that Stockton isn’t really broke and that it should have cut its pension payments instead of reneging on other debts. The judge said the question of how bankruptcy will affect Stockton’s large pension obligations will be a central issue in the case going forward, and it will be closely watched by other struggling California cities. We will discuss the bankruptcy case and what it will mean for Stockton.
Stockton Cleared to Enter Bankruptcy
(Justin Sullivan/Getty Images)
Guests:
Scott Smith, reporter for The Stockton Record
Jeff Michael, director of the Business Forecasting Center at the University of the Pacific in Stockton
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