Not sure if you heard about the recent wave in bankruptcy filing, starting with Stockton, CA. Wel,l San Bernadino, CA is the second in line to file. This isn’t small potatoes here, both cities house well over 200,000 residents.
Over the past 10-years there have been many filings for one of the many Chapters of bankruptcy. We have become quite familiarized with individual and business bankruptcy. But what happens when a U.S. city files for bankruptcy. How does that happen. Well it sorta works like this; Because many families have foreclosed or walked away from an upside down mortgage trap most cities will experience a wave of decline in tax revenues. This domino affect will include the local business who are experiencing a decline in sales, forcing some to close their doors after years of service. The end result? A huge loss in property tax, business licenses and sales tax just to name a few.
Will these declines serve as a backdrop for what’s to come? Are there other cities on the verge of facing their own questions of bankruptcy. Hmmm, how will this affect the citizens? Share your thoughts.