Stockton recently finalized the process to officially declare bankruptcy.
On April 1, a federal bankruptcy judge decided that the city of nearly 300,000 people could declare bankruptcy.
This verdict makes Stockton the largest city in the country to file bankruptcy.
This city is now able to construct a plan to pay off its creditors for less than it owes.
According to news reports, city leaders anticipate putting that plan in motion by June.
In recent years, the city has made drastic cuts to its police and fire departments, while also making changes to its employee retirement programs. The cuts were made in an effort to fight the increasing debt.
The police department hits were some of the most contested as the crime rate in the city soared, with homicides being at an all-time high during 2012.
