San Bernardino Bankruptcy Making Waves

: Chris Lee Law Firm

  Filed under: News

San Bernardino, California is the second-largest U.S. city to enter Chapter 9 bankruptcy in history. While the suburban city has faced financial crisis for quite some time, further troubles are rising as an employees union speaks out against their debt restructuring efforts.


San Bernardino’s debt restructuring plan could soon be dismissed if the city government employee union has its way. Citing the city failed to follow state law requiring neutral negotiations with creditors for at least 60 days prior to the filing, union representatives are asking for the Chapter 9 case to be thrown out.

The San Bernardino Public Employees Association says the city never held the mandated negotiations and, instead, jumped straight into court protection. Risking the loss of retirement benefits and the cancellation of employee funds, the union is filed paperwork this week to oppose the bankruptcy. The objection is currently in review and there is still no word as to the decision regarding the Chapter 9 filing.

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