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Municipal Bankruptcy, Supreme Court Changes, and Today

Municipal Bankruptcy

My Country – Municipal Bankruptcy In 1934, Congress amended the Bankruptcy Act to allow municipalities and public corporations to work out plans of readjustment. At the time, between 2,000 and 4,000 municipal corporations had defaulted on bonds worth nearly $3 billion. Bondholders had no remedy and communities became demoralized. The municipalities were not paying out …