Stockton and Detroit have succeeded in emerging from bankruptcy filings, but other cities could have similar issues in the near future. These medium-sized cities in California and Michigan struggled with, among other things, an underfunded pension system. There was simply not enough tax revenue to pay these obligations. One observer called Illinois the “basket case” of pension cases.
A bankruptcy is like a fresh start for someone who is buried in debt and filing for bankruptcy can have a major impression on your life and credit score. Taking some small steps post-bankruptcy can help to allow you to rebuild your credit and establish good habits for the future.