When a city, village or municipality files for bankruptcy, it is called Chapter 9. It is incredibly rare....
http://finance.yahoo.com/news/Cashstrapped-RI-city-files-apf-1809896377.html?x=0$80 Million in unfunded pension liabilities....
This is the sad result of mismanagement and why I don't care about people saying they have the "choice" in a representative government to decide certain funding issues. People must be made to understand and account for their choices and votes. Otherwise nothing works.
19000 people $80,000,000 in debt. = $4,210.52 per resident. It's not impossible to pay off, especially with financing over a few years, but they just don't want to do it, because they are so adverse to taxes they can't think.... That doesn't factor in a progressive sliding scale charging rich people more even. In this instance bankruptcy = laziness on the town's part. They shouldn't be allowed to do this and should be forced to pay.... That would be against their will, kicking and screaming if need be, while being told, "you will comply." Garnish wages bank accounts, whatever.... Tax Liens....
$4,210.52 Divided out over 10 years in principal would be $421.06/ year (about $35.09/month) ( plus whatever interest they'd pay. Again, that's just per capita straight; not charging the rich more. This seriously isn't hard.... Are people just not willing to sit down with a calculator or what? Gee, $35/month to save the town. Na, not worth it, that'd be a tax increase, O noes! Anything but that. [facepalm]. The state has actually taken over this town.... The mayor has been demoted to an "adviser."
If I was the bankruptcy judge on this case I'd throw it out of my court with a scathing review.... These are retirees we're talking about. The answer can't be, "let's just throw everyone under the bus." Old people having to eat cat food = not good....