Forgive thy creditors...
At least this is what the 117000 residents of Vallejo, CA are going to do now. They took a large loan and then figured that paying it back would be a major pain in the neck. Sorry, creditors, if we are to pay our loan back, that would mean raising our property taxes, and we don't wanna do that. So kiss your money good bye and have a nice day.
"May 7 (Bloomberg) -- Vallejo, California, officials voted to file for bankruptcy because the San Francisco suburb isn't able pay its bills after costs for police and firefighters soared and the housing market's slide cut into tax revenue.
The city council's unanimous decision last night will make Vallejo the largest California city to file for bankruptcy and the first in the state to seek protection from creditors because it ran out of money to pay for basic services. The decision came after it failed to win salary concessions from labor unions.
The city of 117,000 is facing ballooning labor costs and declining housing-related tax revenue that have left it with a $16 million deficit forecast for the year starting in July. In bankruptcy, creditors will be kept at bay while officials devise a plan to balance the books. City services would still operate."