Central Falls, a small town a few miles north of Providence, has filed for bankruptcy after retired residents failed to accept pension and benefit cuts. Just this year, five other cities across the United States have filed for bankruptcy. Boise County, Idaho is among them and if Jefferson County, Alabama files for Chapter 9 it will be the largest U.S. municipal bankruptcy. Other cities on the verge of filing for bankruptcy are Vallejo, California and Harrisburg, Pennsylvania.

Central Falls is considered the poorest city in Rhode Island and has been on the decline since the 70s. Economic decline has lead to a drug increase, getting the name of "the Cocaine Capital of New England." The city has nearly $21 million in outstanding debt.

If you or someone you know is facing a serious financial crisis, contact the Maryland bankruptcy lawyers of Chaifetz & Coyle, P.C at 443-546-4608 to help you understand your options and explain the bankruptcy process.