Posted on Friday, November 11th, 2011 at 10:13 pm
This week Jefferson County, Alabama filed the largest municipal bankruptcy than ever before in American History. The county is $4 billion in debt.
However, experts claim this is a very unique case and municipal bankruptcy is actually rare. In the past thirty years, only forty municipalities have filed for bankruptcy, four this year alone. Earlier this year, Harrisburg, Pennsylvania; Central Falls, Rhode Island; and Boise County, Idaho declared bankruptcy.
Many events caused Jefferson County’s demise. It managed to overpay for a new sewage system, refinanced its debt with risky and untested practices, and nearly two dozen of its officials have been convicted of corruption involving the sewer deal. Jefferson County has already hired two lawyers who charge a combined $1,700 an hour for their services.
If you or someone you know is considering bankruptcy, it is important you have representation to support you and guide you through this difficult time. Contact the Joliet bankruptcy attorneys at the Law Offices of Stuart B. Handelman at 815-722-2201.