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Your February UpdateGood morning, Welcome to our February update, a onestop summary of some of our key business announcements and resources covering the past month. This month, we bring you news of
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Chapter 9 refers to a section of the U.S. Bankruptcy Code that allows municipalities, such as cities and towns, to reorganize their debts while continuing to operate.
Municipalities including cities, towns, and counties that are insolvent and seek to restructure their debts are required to file for Chapter 9.
To file under Chapter 9, a municipality must submit a petition to the bankruptcy court, along with relevant financial documents, a statement of assets and liabilities, and a proposed plan for adjusting debts.
The purpose of Chapter 9 is to provide a legal framework for municipalities to reorganize their debt and manage their financial obligations while still delivering essential services to the public.
Municipalities must report detailed financial information, including income, expenses, debts, and a plan for repayment or restructuring of obligations.
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