Illinois On The Brink Of Bankruptcy!
San Jose residents and consumers in debt, as well as those San Jose residents considering bankruptcy, who believe California’s budget crisis is an anomaly should look to Illinois. NBC news reports that Illinoios' finances are in dire straits, and the state is on the brink of bankruptcy!
Laurence Msall, president of the Civic Federation, a fiscal watchdog in Chicago told Crain’s Chicago Business that all stakeholders of Illinois should “recognize how close the state is to bankruptcy or insolvency.”
Bankruptcy is defined as an inability to pay debts out of current assets, and it’s no secret that Illinois can’t pay its bills. Specifically, Illinois’ unpaid bills total around $5 billion. Unfortunately, Illinois can’t do much about its debt.
Federal bankruptcy protection doesn’t apply to states, so there’s no way for Illinois to hide from its creditors. In light of this, one may expect Illinois politicians to make tough decisions to close the budget gap. As of today, however, no plan exists.
Today, Illinois is not taking in cash, its liquid assets have dipped below $1 million at times, and the state is supposed to pay $5.4 billion into its pension fund next year and $10 billion the year after that. David Merriman, head of economics department at the University of Illinois at Chicago, however, has stated that the real crisis will come when state institutions shut down because they can’t pay their employees.
Consequently NBC news reports that many foresee a governmental collapse in which vendors will stop bidding on contracts, investors will stop buying bonds, and employees will be paid with IOUs, similar to what our own great state of California has done.
Thankfully, bankruptcy does apply to citizens and can be a valuable tool to allow San Jose residents to start fresh!
If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
