Ch. 9 Descends Into The Sewer To Clean Up

Law360, New York (March 6, 2012, 12:13 PM EST) -- One option available to many U.S. cities, towns and other municipalities teetering on the brink of financial ruin in the aftermath of the Great Recession is Chapter 9 of the Bankruptcy Code, a once obscure legal framework that allows an eligible municipality to “adjust” its debts by means of a “plan of adjustment” that is in many respects similar to the plan of reorganization a debtor can devise in a Chapter 11 case. However, due to constitutional concerns rooted in the Tenth Amendment’s preservation of each...
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