In a recent article in the Los Angeles Business Journal, former Mayor Richard Riordan hit the nail on the head not only for the City of Los Angeles itself, but all those considering filing for bankruptcy.
With no small amount of insight, Mayor Riordan declared, “Bankruptcy is not a bad word–insolvency is!” Indeed, the Bankruptcy process if properly applied is designed to restructure your debt so that you can be successful. It serves no productive purpose for a debtor to be unable to pay his debts.
According to Riordan, the City of Los Angeles is insolvent. Parks, libraries and cultural centers are being shuttered. There are even proposals to cut school days. The future of our children and cultural heritage is under threat by a dismal financial outlook.
Bankruptcy is NOT a dirty word. It is designed to address this type of financial condition not only for a big City like Los Angeles, but for families too.
When a persistent insolvency cannot be overcome, it makes no sense to deny a future prosperity. Instead, consider filing bankruptcy. Mayor Riordan has it right for Los Angeles and for the individual debtor.