Bankruptcy

When Cities File Bankruptcy: Here's the Skivvy.

By Joseph McDaniel, Esq.

Those filings are few and far between, usually.

I have talked recently about cities that are discussing filing bankruptcy cases, and therefore decided to show you the law that applies.

Enjoy!

And yes, I expect us to see a massive increase, as the depression deepens, in municipality bankruptcy cases, for the same reason that dentists are now filing bankruptcy cases.

If you obtain money from individuals on a voluntary basis (dentists) or an involuntary basis (taxing authorities) and the people who usually pay you are out of work, or have had their income cut in half, the amounts available for you are reduced.

Nobody, in general, whether a dentist or a city, expects a depression. So nobody plans for it.

It's a little like planning for a volcano erupting under your feet; normally you're too busy to really think about it, because you're working for a living! Or taxing for a living, as the case may be.

NOTHING HERE CONSTITUTES LEGAL ADVICE RE A CHAPTER 7, CHAPTER 13, CHAPTER 11, OR CHAPTER 12. FIND AN ARIZONA BANKRUPTCY LAWYER WHO IS BOARD CERTIFIED IN BANKRUPTCY LAW, AV RATED, AVVO 10 RATED, ON SUPERLAWYERS, OR JUST VERY EXPERIENCED AND A FORMER CHAIR OF SOME BANKRUPTCY SECTION OR COMMITTEE. NOTHING HERE MAY BE USED AS LEGAL ADVICE IN CONNECTION WITH ANY BANKRUPTCY, WHETHER THAT BANKRUPTCY IS IN PHOENIX, GLENDALE, TEMPE, MESA, SCOTTSDALE, OR ANYWHERE ELSE.

Full post as published by Arizona Bankruptcy Attorney Blog on June 18, 2010 (boomark / email).