The Basics of Chapter 9 Bankruptcy

Chapter 9 bankruptcy is a type of bankruptcy that allows municipalities, which are local government entities like cities and towns, to reorganize their debts. It's similar to Chapter 11 bankruptcy, but there are some key differences. For one, Chapter 9 bankruptcy cases are overseen by a federal judge, whereas Chapter 11 cases are overseen by a bankruptcy court. Additionally, only municipalities can file for Chapter 9 bankruptcy.

So what does filing for Chapter 9 bankruptcy mean for a municipality? Essentially, it means that the municipality can work with its creditors to come up with a repayment plan for its debts. This repayment plan may involve the municipality selling off some of its assets, but the goal is to allow the municipality to stay in operation while still paying back its creditors.

The Law Offices of Omar Zambrano has helped thousands of people and businesses in the past to get out of debt and start over.

Our goal is to help you find a fresh start FAST!

Schedule your free consultation today! By Calling 626-338-5505 or visiting us at 12738 Ramona Blvd Baldwin Park CA 91706