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Updated 9:48 PM ET AP SACRAMENTO, Calif. - Stockton has filed for Chapter 9 protection, making it the largest American city ever to declare bankruptcy.City Manager Bob Deis said officials sought the status Thursday in federal bankruptcy court in Sacramento, as expected.The filing comes after officials were unable to reach a deal with the city s creditors to restructure hundreds of millions of dollars of debt under a new sta
stanley cup te law designed to help municipalities avoid bankruptcy.Stockton bankruptcy to become a trend Stockton residents angered by bankruptcy move Stockton, a river port of 290,000 in Central California, was one of less than half dozen larger governments to seek Chapter 9 protection in U.S. history, according to James Spiotto, a Chicago bankruptcy attorney who tracks municipal bankruptcies.It s the first California city to file for bankruptcy since Vallejo, which sought protection in 2008.Chapter 9 has been used sparingly and mostly by small government entities such as water utilities and other special districts, Spiotto said, because it halts a city s ability to develop.The City Council on Tuesday approved a bankruptcy budget to plug next year s ant
stanley kubek icipated $26 million deficit. Cities and counties fear that their ability to fund capital improvements and build infrastructure will be denied or costs will go up if they file Spiotto said. Chapter 9 provides short term gains, but also long term pain. In the past, large mun
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