Nearly two years after a “fierce” debate that “fizzled as quickly as it started,” University of Pennsylvania law professor David Skeel is arguing that the idea of giving states a way to file for bankruptcy remains relevant and necessary.
In addition to corporations and consumers, today’s Bankruptcy Code allow municipalities like cities to seek court protection. But there’s currently no chapter set aside for states that find themselves teetering on the brink of insolvency, nor have states needed one.
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