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Awasome Orange County Bankruptcy References . Web since orange county emerged from bankruptcy in june 1996, there has been a tendency to think that this kind of financial disaster will never happen again. Web when orange county, california, filed for chapter 9 protection on december 6, 1994, it became the largest municipality in united states history to declare bankruptcy. 795 Orange Bankruptcy Attorney Group Aggressive Lawyers Orange from orangecountybankruptcyattorneygroup.com When orange county, california, filed for chapter 9 protection on december 6, 1994, it became the largest municipality in united states history to declare. The county treasurer had lost $1.7 billion of taxpayers’ money. Both groups lived in villages throughout the area.