Municipal Bankruptcy: A Bad Idea, a Solution or an Effective Threat?

Business people and investors now know that municipalities, counties and school districts are struggling with rising labor, health care and pension costs. To understand whether bankruptcy is an effective or desirable option, we prepared an instructional outline explaining the legal procedure, limitations and benefits of the Bankruptcy Code's Chapter 9, dealing with municipal debt adjustment. The outline, available on request, shows how Congress intended Chapter 9 to work, and more important, how it has actually worked since its enactment. It reflects our actual experience counseling a major city and a state agency plus our participation in the legislative process.

For a copy of the outline, please e-mail us.

For more information about municipal bankruptcy, please contact Michael L. Cook or Adam C. Harris.