Largest County in Alabama Goes Bankrupt

BIRMINGHAM, AL 11/10/2011 --

The most populous county in the state of Alabama is about to break a financial record, but it's not exactly the kind of record they would like to break.

Jefferson County, Alabama is about to file the largest municipal bankruptcy in U.S. history.

The county owes billions of dollars after borrowing money for a sewer project.

Officials narrowly escaped bankruptcy in September, but now they say they're out of options.

"It was a decision that I really didn't want to make but it-- right now, we're left with no other alternative. Our last option that was it on the table. But it's going to be okay. It was a bitter ending with a sweet beginning. Commissioners are going to do the best they can along with one of the best qualified legal advisers, chapter 9, who wrote the book, is with us, and he's going to be with us and we're going to protect the ratepayers of Jefferson County," said city commissioner Sandra Little Brown.

The governor says he is disappointed by decision and says bankruptcy will not only negatively impact the immediate region, but the entire state.
Jefferson County includes the state's largest city -- Birmingham.


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