Jefferson County, Alabama, has been cleared by a judge to file bankruptcy. The bankruptcy is the largest municipal bankruptcy in US history. It is a $4.23 billion dollar bankruptcy case. Creditors were arguing that the county cannot file bankruptcy because it had the wrong type of debt, however, the judge sided with the county. The county file bankruptcy on November 9, and has been objected to by creditors since then. One of the main creditors arguing against the bankruptcy was JP Morgan Chase.
The bankruptcy of Jefferson County, Alabama, now outranks Orange County, California's bankruptcy as the biggest government bankruptcy in US history. Jefferson County is home to Birmingham, Alabama.
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