Stockton Can Remain in Bankruptcy Over Objections by Creditors

Stockton Can Remain in Bankruptcy Over Objections by Creditors

David Paul Morris/Bloomberg

Without bankruptcy court protection, Stockton’s creditors would be free to sue the city in state court, where it’s easier to force asset sales, cuts in city services or a boost in revenue to pay debt. In bankruptcy, Stockton is shielded from such tactics and has more power to choose which bills to pay.