A report authored by two emergency financial managers for Atlantic City, New Jersey suggests that instead of filing for bankruptcy, the city of 40,000 should look to cuts, layoffs, requesting state and federal aid and postponing certain payments to help its budget crisis. The city is suffering financially according to a March 24, 2015 NJ.com news article. In 1978, Atlantic Cityâ€™s first casino opened its doors. There were twelve casinos as of last year. Now, there are eight, as four recently shut down. That left thousands unemployed. Due to competition from other casinos around the country, but especially new ones in the northeast, the Atlantic City casino industry is hurting. The casino revenues has almost halved over the past eight years.
Atlantic City is facing city budget and city school budget shortfalls in the amount of $148 million. The budget is currently $260 million annually and the city is $397 million in debt.
Recently, Detroit became the largest municipality to file for bankruptcy. The city could not afford to maintain itself and had trouble contributing to retireeâ€™s pension plans, so it filed for bankruptcy to shrink its debts and restructure its finances. These changes allowed Detroit to continue operating as a city, but the two emergency financial managers of Atlantic City (one of whom served as Detroitâ€™s emergency financial manager) think Atlantic City can survive without filing for bankruptcy. Still, the choice of emergency managers affected some financial markets. Municipal creditors thought that the choice of these two men by the New Jersey government signaled that the government was somewhat comfortable with bankruptcy, so now other cities in the state have noticed higher borrowing costs with these creditors. Whether or not Atlantic City files for bankruptcy, it is hoped that it can continue to maintain its vibrant city atmosphere as a place to live, work and relax.
If you are considering filing for a personal bankruptcy, then contact the law office of Jayson Lutzky, P.C. Whether your have credit card debt or you are on the verge of foreclosure, Mr. Lutzkyâ€™s office can help you throughout the entire Chapter 7 bankruptcy process. The attorney offers free in person consultations. To set up an appointment at his Bronx, NY office, call 718-514-6619. Visit www.MyNewYorkCityLawyer.com to learn more about the lawyer and bankruptcy.