Municipal Bankruptcy
/ˌmjuːnɪˈsɪpəl ˈbæŋkrəptsi/
Definitions
- (n.) The legal process by which a municipality seeks relief from its debts under federal bankruptcy law.
The city filed for municipal bankruptcy to restructure its financial obligations.
Forms
- municipal bankruptcy
Related terms
See also
Commentary
Municipal bankruptcy specifically involves municipalities and is governed principally by Chapter 9 of the U.S. Bankruptcy Code, distinct from Chapter 7 or 11 used by individuals or corporations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.