Municipal Attorneys

The main purpose of the municipal filing a petition with the court is to seek protection against certain actions that the creditors might choose to take against it. This law also protects the debtor, who in this case is the municipal from harassment from the creditors. Though there is no provision for liquidation under this chapter, filing this petition in court acts in the interest of protecting anyone under its jurisdiction. Liquidation or its dissolution would in no doubt go against the Tenth Amendment to the Constitution.

Filing of the petition is voluntarily done by the debtor. Once the petition has been filed, the chief judge appoints a specialized judge commonly referred to as a bankruptcy judge. This is done with the aim of removing politics that may negatively influence decisions made on the case.

Before the commencement of the case, the municipal faced with bankruptcy must first give notice to the court and the general public. It must therefore, through a court clerk, notify the court of its intentions. The court will thereafter recommend a newspaper in which the it must publish a notice at least once a week for three consecutive weeks.

Once the notices have been filed and have been published, the case may begin. However it is not always a guarantee that the court will commence the case. It may reject the petition in some cases which are granted by the bankruptcy code. The petition may be rejected in cases where the state has not allowed it to file a petition. It may also be denied in case negotiations have not been done in good faith. In such cases the court will therefore hold hearings of the dismissal of the petition.