The cities of Vallejo, California, and McCall, Idaho, are considering filing for bankruptcy.
"A labor agreement with the city's public-safety unions aimed at keeping Vallejo's general fund from going broke fell apart, prompting top administrators to recommend the city file for bankruptcy protection. Chapter 9 bankruptcy would allow the city temporary protection from creditors while officials devise a plan, subject to court approval, to regain fiscal stability."
In Idaho: "McCall City Council authorized its city manager to file a petition for bankruptcy at a city council meeting Monday night. However, Ron Blewett, an attorney for the plaintiff, agreed to negotiate some of the charges with the city council."
Thanks to Jon Cecil, AICP