State Representative Ron Sandack (R) filed legislation this week that would make Illinois the 25th state that allows municipalities to seek bankruptcy protections under chapter 9 of the U.S. Bankruptcy Code, the Chicago Tribune reported today. Illinois statutes currently do not allow for such authorization for municipal governments. "I hear regularly from municipal leaders who worry about their ability to pay their bills and meet other debt requirements," said Sandack. "This bill would provide one more tool that municipalities could have at their disposal to address their financial futures in a reasonable and taxpayer-friendly manner."
