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Municipal Bankruptcy: Coming Soon to a Court Near You

By Richard Lapping and Sarah Trum
July 27, 2010

One effect of the recent recession is a heightened focus on past overspending by municipalities that now face some tough financial choices. As tax revenues have declined in the face of falling incomes, sales and property values, more cities small and large have disclosed that resort to Chapter 9 of the Bankruptcy Code, the municipal bankruptcy law, has made it onto their agendas.

Why Chapter 9?

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