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Cars drive through downtown Stockton April 29, 2008 in Stockton, California. As the nation saw widespread home loan foreclosures, Stockton, .California led the nation with the highest foreclosure rate. One out of every 30 homes in Stockton is in foreclosure, close to seven times the national average for a metro area in the U.S.
The Central Valley city of Stockton owns a bunch of superlatives it doesn't really want: America's foreclosure capital, annual contender on the Forbes "most miserable city" list and the largest U.S. city to declare bankruptcy. Today, the city begins the federal court proceedings that could end in Chapter 9. But what exactly does it mean for a city to be bankrupt? The California Report's Scott Detrow looks into that question.