Small Kentucky city files for bankruptcy after it's hit with multimillion-dollar jury verdict

A suburban city near Louisville has filed for bankruptcy, crippled by an $11.4 million jury verdict in a dispute over land and money with a truck-driving school.

That's nearly four times the budget for Hillview, a town of about 9,000 people south of Louisville.

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The city entered its Chapter 9 bankruptcy filing Thursday in federal court.

The filing is meant to keep the city from digging a deeper hole. City Attorney Tammy Baker said Friday that it stops interest from being applied to the multimillion-dollar judgment as city leaders look to resolve the town's financial problems.

She says city services, including police, will not suffer. The city's annual budget is about $3 million.