Can a State, County, or City Government File for Bankruptcy?
The answer is no, yes, and yes. During recent budget sessions in the California assembly a representative suggested that the State of California should file bankruptcy. It is not possible under the United States Constitution for a state to file for bankruptcy and discharge debts. County governments and municipal governments are able to file for bankruptcy and reorganize their debts in Chapter 9 of the bankruptcy code.
Readmore...
Tags: their, should, possible, bankruptcy, governments, California, debts, County, States, file, budget