ABC 33/40 - Birmingham News, Weather, SportsJeffCo bankruptcy could take years

A decision about whether Jefferson County qualifies for bankruptcy protection will not be made until after Christmas. If the county is eligible, attorneys estimate the proceedings could take three to four years.

Commissioners believe keeping the sewer system out of the hands of receiver John Young could help.

For the time being, Young is not in control of the system. The stay against him has been extended until midnight January sixth.

Commissioners hope that's when the federal bankruptcy judge will tell him to step aside permanently.

"I think once eligibility is clear, once the receiver is stayed then I think the creditors will be more apt to negotiate a settlement. This is a little different from other Chapter 9 filings in that the county and creditors had some semblance of an agreement," said Jefferson County Commission President David Carrington.

There's another matter going before the bankruptcy judge. That's the request for the county to terminate all economic development contracts. It would save two and a half million dollars a year.