'Too broke to go bankrupt': Isleton struggles to find path out of debt

Isleton, California, continues grappling with a financial crisis more than a year after it began, with city leaders examining bankruptcy and disincorporation options during a recent council meeting. The small Sacramento County river town has reduced its debt from $5.1 million to $4.6 million but remains in dire financial straits. Finance Director Jessica Bigby told residents the city is "too broke to go bankrupt" and cannot afford disincorporation, which would dissolve the city and transfer control to Sacramento County. Chapter 9 bankruptcy could halt creditors and allow reorganization but would be costly and damage the city's reputation. Disincorporation requires multiple approvals, including voter consent, and necessitates that the county or another agency assume the debt. Frustrated res