Article
Specific Authorization to File Under Chapter 9: Lessons from Harrisburg
California Bankruptcy Journal
(2012)
Abstract
Under a mountain of incinerator debt and after months of fighting within its city council, the city of Harrisburg, Pennsylvania filed a petition under Chapter 9 of the Bankruptcy Code in October 2011. The dismissal of Harrisburg’s case the following month illustrates an important limit on a city’s ability to use Chapter 9 to resolve its financial problems: a municipality must be “specifically authorized, in its capacity as a municipality or by name” to be a debtor under Chapter 9. Although Harrisburg had been authorized by statute to do so prior to June, 2011, the state legislature’s enactment of legislation removing that authorization was held to be effective by the bankruptcy court. This article will explain the events leading up to Harrisburg’s filing and the decision dismissing the case, and conclude with some thoughts about the desirability of eliminating a city’s ability to seek protection under Chapter 9.
Keywords
- bankruptcy,
- chapter 9,
- act 47,
- municipal bankruptcy
Disciplines
Publication Date
2012
Citation Information
Juliet M Moringiello. "Specific Authorization to File Under Chapter 9: Lessons from Harrisburg" California Bankruptcy Journal Vol. 32 Iss. 2 (2012) p. 237 Available at: http://works.bepress.com/juliet_moringiello/59/