Wednesday
Apr302014

August 1, 2012 - San Bernardino Files for Bankruptcy

               San Bernardino - Bankrupt!

*  On July 10, 2012, in light of a projected $46 million budget shortfall, the San Bernardino City Council voted to authorize the City Attorney to prepare for a Chapter 9 filing of municipal bankruptcy.

*  Resolution No. 2012-205, adopted on July 18, 2012, declared a fiscal emergency in the City.

*  Resolution No. 2012-206, adopted on July 18, 2012, authorized the filing of a petition under Chapter 9 of the United States Bankruptcy Code.

*  On August 1, 2012, the City of San Bernardino filed for Chapter 9 bankruptcy.

*  The Chapter 9 filing will allow the City to continue to provide essential services to the community while it takes measures to restructure its finances.

*  In a Chapter 9 bankruptcy there is no provision in the law for liquidation of the assets of the municipality and distribution of the proceeds to creditors.

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