Publication Date
Summary
The article examines whether reforms to Chapter 9 Bankruptcy are needed in the context of cities and counties. It challenges the commonly held belief that Chapter 9 is a poor fit for large municipalities. The goal is to change the discussion on Chapter 9 so that it is viewed as a complementary process to a comprehensive solution in a struggling municipality.
Policy Implications
The mainstream discussion on the role of Chapter 9 bankruptcy in municipality recovery assistance must first change before effective changes can be made. If it remains to be viewed as an independent solution, it will most likely be an insufficient answer. Once its role as one piece in broad state level plan is recognized, policy makers can have a productive conversation about reform.