Stockton, Calif., first bankruptcy hearing

July 6, 2012 5:57:45 PM PDT
Attorneys for the city of Stockton appeared in federal bankruptcy court Friday morning.

This was the first court hearing for the city since they filed for Chapter 9 last week. Stockton officials want the judge to approve a 20-13 budget that allows the city to default on bond payments, cut employee wages and stop paying for retiree health insurance. At least one creditor says it will fight the bankruptcy.