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CHAPTER 13 PROJECT CLOSEOUT I. II.OVERVIEW ......................................................................................................................... 132 GRANTEE PROJECT CLOSEOUT RESPONSIBILITIES
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Chapter 9 -- construction refers to a specific section of law that outlines the regulations and guidelines for filing a bankruptcy case related to municipal entities involved in construction projects. It provides a framework for municipalities to restructure their debt while continuing to provide necessary services.
Municipalities, such as cities, towns, and counties that are facing financial distress due to construction-related debts or liabilities may be required to file Chapter 9 -- construction.
Filing Chapter 9 -- construction involves completing specific forms provided by the bankruptcy court, detailing the municipality's debts, assets, and a proposed plan for restructuring. Legal assistance is often recommended to ensure compliance with all requirements.
The purpose of Chapter 9 -- construction is to provide municipalities with a legal framework to reorganize their debts while protecting essential public services, allowing them to recover from financial difficulties without liquidating their assets.
Municipalities must report comprehensive details on their assets, liabilities, outstanding debts, income sources, and expenses, along with a proposed plan to manage and repay their debts in a Chapter 9 filing.
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