Natomas School District in Sacramento County Heading Towards Bankruptcy

Sacramento Bankruptcy Lawyer Notes Effects of Bad Economy on All

It’s been reported in the Los Angeles Times that there are 14 school districts that are headed towards bankruptcy in California with one of them being the Natomas School District in Sacramento County. As a bankruptcy lawyer in the Sacramento area, this is certainly of interest to me for a few reasons.

Trends

The situation that many school districts find themselves in is akin to the same situation that individuals facing personal bankruptcy have experienced. As costs have been rising, budgets and incoming funds have been shrinking. The districts and individuals cut back as much as they possibly can before they are insolvent.

Connections

As people in the Natomas School District lost their jobs, faced rising costs and found their income shrinking, predicted tax payments fell short because people who are not working, whose businesses have become insolvent and who have lost everything pay little to no tax. About 15,000 of the state’s 300,000 teachers may lose their jobs this year, while thousands of non-teaching employees at schools across the state have already lost theirs. Of course, that means even less money for schools as the tax base is eroded even more.

Decisions

The Natomas School District and others across the state face some tough decisions. As a bankruptcy attorney in the Sacramento area, I’ve worked with people from Northern California who have had to deal firsthand with this situation. This is never easy but bankruptcy can be the first step towards a more secure future.

Please contact our bankruptcy offices in California, serving Sacramento, Oakland, Santa Clara, San Francisco and other communities in Sacramento County, at info@california-bankruptcyattorney.com or at 888-589-1977 if you have any questions regarding bankruptcy.