FOR CHICAGO, BANKRUPTCY IS NOT THE ANSWER However, Chicago cannot address its financial problems in bankruptcy because Illinois State law does not permit its cities to file for Chapter 9 protection
Austin Berg: Why Chicago’s Property Taxes Just Exploded "I think the really important thing for Chicago is the power to reorganize its debt We are the only big city in the country that cannot enter Chapter 9 bankruptcy protection," Berg suggested
Municipal Bankruptcy - Can an Illinois Municipality File for Bankruptcy . . . In short, Chapter 9 governs bankruptcy relief for municipalities While Chapter 9 petitions are extremely rare, the recent recession and resulting municipal budget imbalances have raised the question of whether bankruptcy is an option for cities and other local units of government across the country
The Debate Continues – Should Chicago’s Public School District File For . . . In order for that to happen, the Illinois state legislature would have to pass a bill enabling the school district to file for bankruptcy Under the current law in Illinois, municipalities are not allowed to file for bankruptcy, however, the state legislature has the power to change that
Microsoft Word - Financial reform for municipalities in IL. doc This article is limited to a discussion of the Illinois procedural requirements that a municipality or unit of local government must follow in order to file for Chapter 9 relief, and does not address the rights and obligations of Chapter 9 debtors or creditors