States, cities, towns and villages all over the country are in financial distress. Some, like the village of Johnson City in Broome County, New York are considering merging into the surrounding town of Union. Others are not paying their payrolls on time, or drastically cutting back on essential services. At least one town in Indiana is seriously looking into filing for Chapter 9 Bankruptcy protection.
The town of Georgetown, in Floyd County Indiana has taken some steps to file a Chapter 9 Bankruptcy petition. Town Council President Billy Stewart says ”There’s no way for Georgetown to pay” its debts, according to the Courier-Journal. “We don’t have it.”
Municipal bankruptcies are rare, but in the past five years, there have been 33 Chapter 9 filings in the U.S., three in the first quarter of 2009.
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