County in Alabama Declaring Bankruptcy
Posted on Jun 19, 2013
Jefferson County in Alabama is in the process of filing bankruptcy to help deal with $4.2 billion in debt. At the time of filing, this case is the biggest municipal bankruptcy in US history.
The county owes over $3 billion in debt for sewage repairs they needed in order to bring the town under compliance with federal water regulations. The city became unable to pay the debt after interest rates skyrocketed following the financial crisis of 2008. Approximately $2.4 billion of the bankruptcy will deal with this debt.
The sewage repairs have become a major controversy, with politicians and bankers all being blamed for poor planning and corruption. The project began in 1997 and still isn't complete, even with all the debt it brought to the community.
Bankruptcy for governments is rare, but the problems that cause it are common.
Perhaps you are in a similar situation, with debts you can't repay. Perhaps, like Jefferson County, you were hit hard by the recession. Maybe you feel like there's no way out.
If that's the case, you shouldn't feel bad. And you shouldn't wait around for something to change. You should call our Kansas City bankruptcy lawyers to discuss your situation for free. We can help you figure out your options, without judgement or shame.
Even governments get in over their heads in debt. You're not alone in having a problem, and you won't be alone in fixing it when you call us today.