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Chapter 9, Title 11 of the United States Code is a chapter of the United
States Bankruptcy Code, available exclusively to municipalities and assists
them in the restructuring of debts. Most famously Chapter 9 was used by
Orange County in 1994 to adjust its debts.
While in many ways similar to other forms of bankruptcy reorganization
(Chapters 11, 12, and 13), Chapter 9 has a number of unique
characteristics. Because municipalities are entities of State governments,
the power of Congress to adjust their debts through bankruptcy is limited
considerably by the 10th Amendment.
United States bankruptcy law
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