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Chapter 9

CHAP-ter NYNE
A form of bankruptcy in the United States that applies to municipalities (cities, towns, counties, and other local government entities). It provides a process for these entities to restructure their debts and continue operating while providing essential public services.
The city faced a financial crisis and was forced to declare Chapter 9 bankruptcy to address its mounting debts and restructure its finances.
City of Detroit bankruptcy (2013)
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Frequently Asked Questions

The purpose is to provide financially distressed municipalities with a way to reorganize their debts and continue providing essential services to the public.

It is specifically designed for municipalities and has different rules and procedures compared to other bankruptcy chapters.

Challenges include balancing the interests of creditors with the need to maintain essential public services, political pressures, and potential impacts on residents and employees

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