Consumers are not the only ones to get themselves in trouble financially, in fact, the city of Cleveland also suffered from bankruptcy. At one point in time, in the 1970s, Cleveland had somewhere between $14 million in loans from six different banks. Investors were not willing to risk buying municipal bonds which would have floated Cleveland for a little while longer. So, instead, on December 15, 1978, Cleveland, Ohio became the first city since the Great Depression to default on its loans and fell into bankruptcy.
It should be clear from the history of Cleveland that not only citizens, but cities too, can fall into bankruptcy. However, this should also offer a sign of hope for people as well. Cleveland is now a city that is fiscally strong. In fact, Cleveland is stronger now than ever, with a “B” grade in fiscal health and $3.8 million surplus, as per the latest data released by the Federal Reserve in 2020 (source). So, although Cleveland had a rough patch financially, it was able to recover and build back stronger. This is exactly what a person entering bankruptcy should be intending to do after exiting the bankruptcy process, to build back better.
Bankruptcy in Cleveland, Ohio
Do you live in the city of Cleveland and have you fallen on hard financial times? If so, you may want to consult with a Cleveland bankruptcy attorney for a free consultation. Bankruptcy is not always right for everyone, but without talking to a Cleveland bankruptcy lawyer, it’s hard to know whether or not it’s the right choice for you. It’s good to explore all your options and if you are looking for a free, no-obligation consultation, call 216-526-0309, to speak to attorney Jon Ginter today.
If you’d like to learn more about the history of the Cleveland bankruptcy click here.
