PA House Leaders: City of Harrisburg Chapter 9 Bankruptcy Prohibition

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Both PA Speaker of the House Sam Smith and House Majority Leader Mike Turzai confirmed that this year, the Legislature won't extend the municipal bankruptcy prohibition, which primarily affects the capital City of Harrisburg.

Sam Smith stated the PA Legislature will do "nothing legislative" to maintain the ban on Chapter 9 that was already continued once since its original June 30th termination date. Just as the one year ban was ending, the State Legislature voted to extend it for five more months. Harrisburg Receiver William Lynch has been very clear about the fact that he wants to be able to use municipal bankruptcy as a tool of negotiation with creditors as he strives to solve the City's fiscal problems. The prohibition will now end on November 30th.

by Tara Leo Auchey

photo by Natalie Cake

 
Tags: Act 47, Chapter 9 Bankruptcy, City of Harrisburg, Majority Leader Mike Turzai, PA Legislature, Speaker of the House Sam Smith