Kentucky city files for bankruptcy after large jury verdict

Its goal with the filing is to develop a reasonable plan for the city to pay the judgment while “ensuring that Hillview is a great place to live and raise a family”.

“It was a tough decision for the city, they didn’t want to do it”, said Hillview City Attorney Tammy Baker.

The city’s biggest creditor is Truck America Training, the truck-driving school that won the $11.4 million verdict in 2012.

According to the Bloomberg report, the issue that caused the town of 8,000 to declare bankruptcy was contract dispute with a local company, Truck America Training, over a land sale. They had a contract to purchase 40 acres owned by the city of Hillview.

Baker said the city hopes its citizens will not be affected, adding that she expects no changes to the police department or other services.

Baker says the city filed for bankruptcy to stop the interest growing at more than 37 hundred dollars every day.

The City of Hillview, in Bullitt County, has filed for Chapter 9 bankruptcy with the United States Bankruptcy Court in the Western District of Kentucky.

“This decision was not make lightly, and in fact, has been agonized over by the Mayor and Council members”, said the release.