Stockton Bankruptcy in court in late March

    Since Stockton was the largest municipal bankruptcy in U.S. history, its not surprising that some would challenge its legitamacy.

   However, a judge has ruled that Stockton must go to trial and prove that it has the right to file for bankruptcy protection and isn't just trying to get out of paying its creditors. (like Wall Street Bondholders)

   The city is apparently still paying CalPERS a sweet $29 million a year.