According to the San Francisco Chronicle, City College of San Francisco may have to file for bankruptcy.
The Chronicle reports that the college is in financial trouble because it failed to make budget cuts when the state of California reduced funding to colleges and universities last year. The Chronicle reports that a bankruptcy is imminent because City College “employs nearly twice as many faculty as similar colleges and pays them better – yet educates no more students on average.”
The Chronicle reports that the college has until March 15 to make structural changes needed to retain its accreditation through the Accrediting Commission for Community and Junior Colleges.
Last month we told you about Atlanta’s Morris Brown College, which filed for Chapter 11 bankruptcy to prevent the foreclosure of several buildings on its campus. Morris Brown also lost accreditation through the Southern Association of Colleges and Schools because of its financial problems.
If City College were to file for bankruptcy, it could dig itself out of its current financial situation. Through a Chapter 11 bankruptcy, City College would remain in control of its finances with oversight from the court and retain control of its assets, while renegotiating benefit packages with its employees.
As it would for City College, a bankruptcy could help individuals facing a difficult financial situation. Chapter 7 and Chapter 13 bankruptcies allow you to discharge unsecured debt, like credit card debt or medical bills.
If you have large amounts of debt, bankruptcy is an option. Visit our website for more information about the benefits of bankruptcy, or call us at (202) 483-6070 to schedule an appointment.