Lawyers

  What Other Types of Bankruptcy Are There As a New Yorker. you’ve heard of bankruptcy Chapters 7, 11, and 13 – but have you ever heard of Chapters 9, 12, and 15? What is Chapter 9 Bankruptcy? Chapter 9 bankruptcy covers municipalities (cities and villages), counties, utilities, and school districts. Like Chapters 11 and 13, Chapter 9 allows these governmental entities to reorganize their debts.  Unlike Chapters 11 and 13, the Bankruptcy Court cannot compel entities going through Chapter 9 to sell off assets (such as a local park – although a municipality may choose to do so on its own), nor can the court make spending or other policy decisions on behalf of the entity. The Court can only approve the petition, confirm the plan, and ensure that it’s implemented. Like companies going through the bankruptcy process, entities going through Chapter 9 usually have a large number of creditors – ranging from large multinational corporations to small local busi...