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Chapter 9 Bankruptcy

Municipal Time for Chapter 9

Chapter 9 of the bankruptcy Code is intended for reorganization of municipalities including cities, towns, villages, countries, taxing districts, municipal utilities and school districts. It also includes revenue-producing bodies such as highway, bridge and gas authorities.

There have been fewer than 500 municipal bankruptcy petitions filed during the last 60+ years.

A Different Breed of Bankruptcy

Although similar to other chapters, Chapter 9 is significantly different in that there is NO provision for liquidation of the municipality assets or distribution of the proceeds to creditors.

Who Can File For Chapter 9?

Only a municipality may file for relief under Chapter 9. The term “municipality” is defined in the Bankruptcy Code as a political subdivision or public agency or instrumentality of a State.

Call (316) 267-2000 today to schedule your free consultation.