As Congress had to create a new law to allow Puerto Rico to declare bankruptcy, some academics and analysts say that the territory's debt plan — if ultimately approved — could be a pathway for states to declare bankruptcy (not allowed under U.S. law), according to a San Diego Union-Tribune commentary. Eight out of 12 experts interviewed said that the Code should not be changed to allow states to declare bankruptcy. "Giving states the bankruptcy option would give them an easy way to renege on pension and other obligations, but it would exact large costs," said Prof. Lynn Reaser of Point Loma Nazarene University. "Financing would become more expensive as bond holders become more wary and fearful of losses." Experts who thought that states should be allowed to file for bankruptcy believed that the restructuring process would be undertaken cautiously. "States would not pursue bankruptcy lightly since future access to bond markets will be negatively impacted," said Prof. David Ely of San Diego State University.
