Harrisburg: A Case Study in State Law Barriers to Chapter 9
On November 23, 2011, the Bankruptcy Court for
the Middle District of Pennsylvania dismissed Harrisburg,
Pennsylvania's Chapter 9 bankruptcy petition because, shortly
before the filing, the state legislature expressly prohibited
Harrisburg from seeking relief under Chapter 9.
Harrisburg's failed attempt to remain in Chapter 9 highlights
the political factors and state law constraints that
municipalities must consider prior to seeking bankruptcy
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