The city of San Bernardino is set to become the third city to file for bankruptcy this year in California after Stockton and Mammoth Lake. The city has been suffering from a massive budget shortfall of around $45.8 million and will not be able to make its payroll or cover its other expenses. The City's expenditures have been exceeding its revenues since 2009 and the expenditures have been continuously exceeding since that time.
The City Council voted on Tuesday, July 10 to authorize heading toward bankruptcy. On Monday, July 16 the City Council postponed a vote to declare a fiscal emergency that allows the city to file for Chapter 9 bankruptcy protection. The declaring of a fiscal emergency allows the city to go through state-mandated mediation to help solve its budget crisis.
San Bernardino has been hit hard by the past economic and housing crisis here in California. The city may now become the next city in California to declare a municipal bankruptcy.
If you have any questions about bankruptcy, contact an Orange County Bankruptcy Attorney at 1st Calfornia Law Inc.