Stockton is a city in California with around 300,000 residents. Back in July of 2012 they filed for Chapter 9. Until recently, it had been the largest city to file for protection against creditors for debts that it could not pay. The city of Detroit ended up filing and took the category for the new largest city in this position. The people of Stockton recently took a vote to see if those in the area were willing to increase their tax rates in an effort to get their city back on the right track. Back in July of 2012 they filed for Chapter 9.
The tax would be increased from 8.25 to 9 percent. Over the next ten years this would have provided around $300 million. These funds would be allocated towards correcting the city's finances and allowing more officers to be hired and put out on the streets. Reports from city officials state that their plan is to put 35 percent towards debt related to the bankruptcy and the other 65 percent will be for 120 officers. When the results of the vote came in, the tax increase was approved by a majority of 52.5 percent.
The increase in tax will also allow for the city to continue its plan to exit bankruptcy. They are currently in the negotiation stage but if the increase was not approved then they would need to start over. Fortunately, through legal efforts, the city appears to be headed in the right direction and will potentially have the chance to recover. If you are facing financial difficulties, find out what resources are available to you by contacting my firm, the Law Office of Sarbdeep Atwal. Payment plans are provided and we can work together to potentially find a solution that works for you.