Legal Definitions - Chapter 9

Definition: Chapter 9 is a section of the United States Bankruptcy Code that deals with the process of adjusting a municipality's debts. It is also used to refer to a bankruptcy case filed under this chapter.

Examples:

• A city in financial distress may file for bankruptcy under Chapter 9 to restructure its debts and regain financial stability.
• Chapter 9 was used by the city of Detroit in 2013 to address its $18 billion debt and improve its financial situation.

These examples illustrate how Chapter 9 can be used by municipalities to address their financial difficulties and reorganize their debts. It provides a legal framework for cities to negotiate with their creditors and develop a plan to repay their debts over time.