Chapter 9, Title 11, United States Code

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Chapter 9, Title 11 of the United States Code is a chapter of the United States Bankruptcy Code, available exclusively to municipalities and assists them in the restructuring of debts. Most famously, Chapter 9 was used by Orange County, California in 1994 to adjust its debts.

While in many ways similar to other forms of bankruptcy reorganization (Chapters 11, 12, and 13), Chapter 9 has a number of unique characteristics. Because municipalities are entities of State governments, the power of Congress to adjust their debts through bankruptcy is limited considerably by the 10th Amendment.

1 Notable Municipal Chapter 9 Bankruptcies:
2 Hospital District Chapter 9 Bankruptcies:
3 External Links:
4 References

[edit] Notable Municipal Chapter 9 Bankruptcies:

Orange County, California, 1994, due to investment losses.
Desert Hot Springs, California, 2001, due to losing a law suit, ^[1]
Moffett, Oklahoma, 2007, due to loss of ability to issue traffic tickets.
Gould, Arkansas, 2008 ^[2], due to spending money withheld to pay employee income taxes.
Vallejo, California, 2008, due to inablity to pay pension obligations.^[3]