Modifying or Terminating Pension Plans Through Chapter 9 Bankruptcies With a Focus on California

ABSTRACT: When Stockton, California, a city of just under 300,000 people, filed for Chapter 9 protection on June 28, 2012, 1 it became the largest U.S. city by population to do so. 2 Like other municipalities, Stockton has been greatly affected by the collapse of the sub-prime lending market from 2007 to 2008. 3 Stockton, however, was disproportionately affected because of its location in the Central Valley region of California, an attractive location for those who want to live near the Bay area, with one out of every thirty homes in foreclosure.