The city council of Stockton, Calif., could soon file for bankruptcy protection, according to Bloomberg. The central California city is one of the places hit hardest by the recession and housing crisis.

Alison Vekshin and Michael B. Marois report the city has $702 million of long-term bond debt and a $450 million unfunded liability for retirement costs. Stockton would be the largest city to file for bankruptcy and is twice the size of Vallejo, Calif, which filed in 2008.

The unemployment rate in Stockton hit 15.9% in December. Read more at Bloomberg.