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Chapter 9 is a section of the U.S. Bankruptcy Code that provides for the adjustment of debts of a municipality.
Municipalities such as cities, towns, and counties that are unable to meet their financial obligations may file for Chapter 9.
To file for Chapter 9, a municipality must file a petition with the bankruptcy court, along with a statement of its debts and assets.
The purpose of Chapter 9 is to allow municipalities to reorganize their debt while continuing their operations and services.
Municipalities must report their financial condition, including assets, liabilities, income, and expenditure details.
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