STOCKTON, CA - The Stockton City Council voted to begin the bankruptcy process by going into a mediation period with creditors.
California state law says cities must have a 60-day mediation period with its creditors where the city discusses ways to avoid bankruptcy.
After the mediation period, the city is allowed to file for bankruptcy if there is no plan to avoid it.
Council members voted 6 to 1 to move ahead with the process, but still hope to avoid filing for bankruptcy.
The city council hopes that during the mediation period, they can work out a payback plan with creditors.