bankruptcy constitution
Municipal Bankruptcy Chapter 9
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.
About the Author
Peter Gitundu Researches and Reports on Bankruptcy. For More Information On Municipal Bankruptcy, Read More Of His Articles Here MUNICIPAL BANKRUPTCYYou Can Also Add Your Views About Municipal Bankruptcy On His Blog Here MUNICIPAL BANKRUPTCY
Why does the Constitution provide Laws for Bankruptcy; but not for President to give away money to prevent it?
Seems like the founding fathers had an understanding that poorly managed businesses might run out of cash.
My thought is if Bush had ever actually read “the piece of paper” he might have known we have Laws in place to handle this.
You’re right, Article I Section 8 of the United States Constitution provides that Congress shall have the power “to establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States.”
I assume that your question is whether the recent “bail-out” bill was constitutional. The most recent bail out bill was passed into law by the current Democratically controlled Legislature and signed into law by our Republican President. One of Congress’ powers under the the same article and section of the Constitution is to tax us and “provide for the general welfare” of the United States.
So, the Constitution does provide for the Congress to appropriate money for the welfare of the Union.
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