Harrisburg, Pa., files for Chapter 9 bankruptcy

[harvey007]

Source: Reuters

Oct 12 (Reuters) - Pennsylvania's capital, Harrisburg, filed for a rare Chapter 9 municipal bankruptcy on Wednesday after it was unable to resolve its debt crisis with creditors and faced a possible takeover by the state.

Harrisburg becomes one of the biggest cities to opt for the little-used chapter of the U.S. bankruptcy code.

Read more: http://www.reuters.com/article/2011/10/12/harrisburg-bankruptcy-idUSN1E79B0DS20111012

[HopeHoops]

1. They honestly didn't have a better choice. Act 47 would have fucked them. Mayor Thompson knows

what she's doing.

[jtuck004]

2. Is everyone in the city going to have to attend a financial education class? /nt

[malthaussen]

3. Chapter 9

May be a "little-used chapter" of the bankruptcy code, but I have a feeling we're going to be seeing a lot more of it in upcoming times.

Meanwhile, I'm glad the mayor upset Tom Corbett's little apple cart.

-- mal

[sweetapogee]

5. Meanwhile, I'm glad the mayor upset Tom Corbett's little apple cart.

I don't understand this. Why are you glad? Should we all be glad?

[struggle4progress]

4. Harrisburg council approves bankruptcy filing

HARRISBURG, Pa. (AP) – Pennsylvania's financially distressed capital city is seeking Chapter 9 bankruptcy, citing overwhelming debt, but Harrisburg's mayor and top city lawyer said the filing signed by a City Council member was not legal.

The petition docketed by U.S. Middle District bankruptcy court Wednesday listed about $458 million in creditors and claims, and said the city faced "imminent jeopardy" from six pending legal actions by creditors related to a debt-saddled trash incinerator.

"The city does not have the ability to pay those money judgments or any significant portion thereof and still provide health and safety services to its citizens and other essential government services," wrote attorney Mark D. Schwartz, who did not immediately return messages seeking comment.

The filing was signed by Councilwoman Susan Wilson after a 4-3 vote by the council in favor of a resolution to authorize it late Tuesday ...

http://www.usatoday.com/news/nation/story/2011-10-12/harrisburg-financial-woes/50741802/1