Legal Question in Bankruptcy in California

City is Bankrupt

Can a city filing bankruptcy get out of paying a settlment negotiated with the EEOC on a charge of discrimination?


Asked on 10/22/08, 11:43 pm

1 Answer from Attorneys

David Gibbs The Gibbs Law Firm, APC

Re: City is Bankrupt

Potentially. Municipal bankruptcy is a very specialized field, and very few attorneys have any expertise in that area of law. It is not like a consumer bankruptcy, or even a business bankruptcy. You are going to need to consult with a bankruptcy attorney or law firm which has some experience in large-business bankruptcies, as I doubt there are many in your area who are "experienced" with municipal bankruptcy law. Unfortunately, it is a question that will require a fair amount of research on almost anyone's part, so its going to cost you some money to get that opinion. I wasn't aware that any cities in California had filed for protection yet - I know Vallejo is close to filing, and it looks like you might be in that area. Frankly, if your claim is against a city that does file, you are going to have to expend a great deal of time and money obtaining legal representation in the bankruptcy, and you need to be extremely diligent in who you select to represent you as it is a very specialized area of law. Good luck - I would push like crazy to attempt collection of the judgment before it files.

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Answered on 10/23/08, 12:55 pm


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