A Study In State Law Barriers To Ch. 9

Law360, New York (January 30, 2012, 2:04 PM EST) -- On Nov. 23, 2011, the Bankruptcy Court for the Middle District of Pennsylvania dismissed Harrisburg, Pa.’s, Chapter 9 bankruptcy petition because Harrisburg was not specifically authorized to file for Chapter 9 as required by the Bankruptcy Code. Harrisburg’s failed attempt to remain in Chapter 9 highlights the political factors and state law constraints that municipalities must consider prior to seeking bankruptcy relief.[1]

This article will discuss the origins of Harrisburg’s debt crisis, the Harrisburg City Council’s attempt to file for Chapter 9 without the mayor’s approval,...
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