A federal judge ruled on Friday that Detroit’s request to table three lawsuits filed by Ingham County creditors was valid, thus pushing aside a major roadblock in the city’s Chapter 9 bankruptcy case. This ruling overrode a previous ruling, which declared that Michigan Governor Rick Snyder had “trampled the Michigan Constitution,” and acted illegally when  … Read more

San Bernardino is the third of California cities filing for Chapter 9 bankruptcy in the last two months. After having determined they would not be able to meet city payroll obligations this month, the City Council declared themselves financially insolvent. With the increase in municipal bankruptcy filings, many Californians are left wondering what is happening  … Read more

Unfortunately, it’s becoming more common these days to hear of a city filing for bankruptcy.  While the news was last tuned in to the major bankruptcy case in Jefferson County, Alabama, the public’s attention is now turning to Stockton, CA, a city of 292,000 people that filed for Chapter 9 bankruptcy on June 27, 2012.  … Read more

Stockton California has been facing tough financial decisions for some time. As city officials inch closer to a Chapter 9 municipal bankruptcy filing, their efforts are being put on hold as the result of a new law. Now forced into a mandated mediation period, the city is working towards a plan that will consider alternatives  … Read more

When Jefferson County, Alabama filed for Chapter 9 bankruptcy back in October it was thought to be one of the biggest municipal bankruptcy cases in history. A new record is about to be broken as another city is on the verge of taking the title of becoming the largest city in the United States to  … Read more

After filing for Chapter 9 municipal bankruptcy in October of last year, Harrisburg, PA found itself being denied by the court. Citing the city’s bankruptcy filing was illegal a federal judge dismissed the case, leaving  city officials back in the financial hot seat. Now just a few short weeks later, the city has a new  … Read more

In June of this year, Jefferson County, Alabama began talks of filing for bankruptcy. What is expected to be the largest Chapter 9 bankruptcy case in U.S. history has now been approved. County commissioners voted 4-1 to declare bankruptcy after alternative efforts failed to reach agreement. Behind Closed Doors Jefferson County officials have been meeting  … Read more

Jefferson, Alabama taxpayers are bracing themselves for the effects of their city filing the largest Chapter 9 bankruptcy in history. Jefferson filed for Chapter 9 bankruptcy protection late last month requesting help with debt reorganization. The municipality suffered increased debt over rebuilding costs after a devastating tornado, their over-reliance on insured bonds and internal corruption  … Read more

In the wake of tough economic times, the country, states and cities are all fighting to pay their bills and keep the money flowing into crucial programs. It appears as though there was been an increase in the number of municipalities seeking bankruptcy protection through Chapter 9. In the past, Chapter 9 cases were considered  … Read more

It may come as a surprise to many that an entire city, or county, could file for bankruptcy. In fact, there have been many municipalities, big and small, that have sought debt relief through Chapter 9 bankruptcy protection.  Although they aren’t commonly publicized,  Chapter 9 bankruptcies involve  a reorganization of debts for cities experiencing financial  … Read more