California City Can Emerge From Bankruptcy As Detroit Waits Its Turn08:10
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Two years of financial limbo came to an end yesterday in the Northern California city of Stockton. A judge approved the city's plan to reorganize more than $900 million of debt, which means Stockton can emerge from bankruptcy.

Stockton spent lavishly before the recession on sports venues, public buildings and employee benefits. Those expenditures ended up costing the city dearly. It became the second largest city in the country to file for bankruptcy protection after Detroit, which will learn the fate of its own restructuring plan next week in a Michigan court.

Michelle Wilde Anderson, a law professor at Stanford University, has been following the legal proceedings in both cities and speaks to Here & Now's Robin Young about the terms of the cities' reorganization plans, and whether retirees and creditors will get the money they were promised.

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This segment aired on October 31, 2014.

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