Boca Raton Bankruptcy Attorney

Chapter 9 Bankruptcy

Sometimes, unfortunate or tragic events affect a town to the point of financial disaster. Many instigators can be the cause of these fiscal troubles, including budget mismanagement or the death of a key individual. Many times, these events are unforeseen by members of the municipality. Chapter 9 bankruptcy aides the community in its efforts to regain financial stability.

Like other forms of bankruptcy, Chapter 9 will help cure the city’s monetary issues by repaying creditors and helping the political subdivision develop a plan to successfully pay off its debt. The city can then rebuild itself, and financial disaster is mostly avoided.

Eligibility Requirements

Only a municipality can file for this particular form of bankruptcy, meaning that only a political subdivision or a community with its own governing body is eligible. This includes cities, towns, and some districts. The community must also be willing to pull themselves out of financial debt, and it must reach some sort of negotiation with its owed creditors, indicating that they approve of this plan.

Individuals or companies are not allowed to file for this particular form of bankruptcy. There are other forms available for other specific situations, but only municipalities can file for Chapter 9.

Contact Us

If you think that your town, city, or district has turned in the direction of fiscal detriment, or if you would like more information on how to file for Chapter 9 bankruptcy, Boca Raton bankruptcy attorney Eric Klein, P.C. can help. Contact his law office at 561-353-2800 today.