More Controversy Surrounds Harrisburg Bankruptcy

: Chris Lee Law Firm

  Filed under: News

harrisburgHarrisburg, Pennsylvania has been suffering financially for a while, finding themselves unable to pay vendors for necessary city supplies. Tightened state funding, vendor lawsuits piling up against the city and difficulty managing city funds have all contributed to Harrisburg’s financial woes. As Harrisburg,PA officials prepare for the worst, critics on both sides scoff at the intentions behind their recent bankruptcy filing and worry what the outcome will bring.

 

Trouble Is Brewing

Lawmakers are in an uproar over Harrisburg’s bankruptcy filing, stating the city violated the state amended law that was passed earlier in the summer prohibiting municipalities from filing Chapter 9 until July 1, 2012. A bankruptcy court judge is currently reviewing the case to determine whether Harrisburg qualifies for Chapter 9 protection. Objecting parties have been provided the right to file briefs and petitions for the dismissal of the case until October 28th.

While the court works to resolve the conflict between parties, Pennsylvania Governor Tom Corbett is gearing up to take control of Harrisburg’s finances. State involvement is usually not warranted or welcomed under such circumstances, but the Governor feels the action is necessary to prevent further financial crisis. Whether the criticism originates from the bankruptcy filing itself or from the aversion to state involvement, no one is welcoming the Governors action with open arms.

 

 


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