Chapter 9 Bankruptcy

When considering the subject of bankruptcy, few people would mention the uniquely challenging issues surrounding a municipality or governmental entity that is unable to meet the terms of the payment arrangements it has established with creditors. Though rarely utilized, Chapter 9 of the United States Bankruptcy Code exists in order to address the latter of these situations and was introduced as an alternative to the previous structure, under which creditors might force a municipality to raise taxes.

If your own debt situation has gotten out of control or adverse life events have left you unable to satisfy your financial obligations, a bankruptcy filing might offer the relief that you need. For a free initial consultation, contact the Arizona bankruptcy lawyers of the Harmon Law Office, LLC at 480-829-0494.

Entities Eligible for Chapter 9

Entities that may be eligible for Chapter 9 include:

• Counties
• Cities/Towns/Boroughs and other similar municipal organizations
• Hospital districts
• Housing authorities
• Government-owned and operated utilities
• Park authorities
• Miscellaneous arms of a municipal government

Chapter 9 bankruptcy protection is similar in some ways to Chapters 11, 12, and 13 insofar as it permits a filer to reorganize its structure and to renegotiate the terms of its repayment agreements. In some cases, this may even extend to include requesting modifications to the principal and interest of a particular debt.

Contact Us

The existence of Chapter 9 Bankruptcy emphasizes the fact that financial hardship can strike any person or any organization. Contact the Arizona bankruptcy lawyers of the Harmon Law Office, L.L.C., at 480-829-0494 to speak with a skilled and experienced attorney about your situation.