Municipal Bankruptcies: Effects and Fallout

• In Event: Municipal and Nonprofit Debt

Abstract

Cities and other municipalities falling on hard financial times is common However in the past few years, municipalities have begun to file bankruptcy as a means to resolve their financial difficulties. A number of recent high profile municipal bankruptcy cases are enhancing the visibility of municipal bankruptcies. This paper discusses both the positive and negative effects of municipal bankruptcies on the communities and their stakeholders. In addition concerns for the future are discussed as well as those municipalities that are struggling with mounting financial issues during the country’s economic recovery.

Authors

• Mary Fischer, University of Texas-Tyler

• Joshua McElroy, Southside Bank

• Treba A Marsh, Stephen F. Austin St University