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Bankrupt Cities, Municipalities List and Map



Many local governments across the U.S. face steep budget deficits as they struggle to pay off debts accumulated over a number of years. As a last resort, some have filed for bankruptcy.

Governing is tracking the issue, and will update this page as more municipalities seek bankruptcy protection.

Overall, bankrupt municipalities remain extremely rare. A Governing analysis estimated only one of every 1,668 eligible general-purpose local governments (0.06 percent) filed for bankruptcy protection over the past five years. Excluding filings later dismissed, only one of every 2,710 eligible localities filed since 2008.

Most recently, the Hardeman County Hospital District in Quanah, Texas, announced it was seeking bankruptcy protection in March. The majority of Chapter 9 bankruptcy filings have been submitted by utility authorities and other narrowly-defined special districts. In Omaha, Neb., nine Sanitary and Improvement Districts filed for bankruptcy in recent years.

It's also important to note that only about half of states outline laws authorizing municipal bankruptcy. View our bankruptcy laws map for each state's policies.

List of Bankruptcy Filings Since January 2010

All Municipal Bankruptcy Filings: 33

City and Locality Bankruptcy Filings (7):

-- City of San Bernardino, Calif.
-- Town of Mammoth Lakes, Calf. (Dismissed)
-- City of Stockton, Calif.
-- Jefferson County, Ala.
-- City of Harrisburg, Pa. (Dismissed)
-- City of Central Falls, R.I.
-- Boise County, Idaho (Dismissed)


Municipal Bankruptcies Map
The map below shows all municipalities filing for Chapter 9 bankruptcy protection since 2010, along with local governments voting to approve a bankruptcy filing.  

Cities, towns and counties are shown in red. Utility authorities and other municipalities are displayed in gray. Click a marker to view details of each filing. Multiple municipalities have filed for bankruptcy in some cities, such as Omaha, Neb., so not all markers are visible without zooming in on the map.

Please note that several municipal bankruptcy filings have been rejected, as indicated.

 

Last updated April 2, 2013.

In 2012, Stockton, Calif., became the largest U.S. city to file for bankruptcy. San Bernardino, Calif., was the most recent city to approve a bankruptcy filing after City Council members learned the city had only $150,000 left in its bank accounts.

States without laws authorizing municipal bankruptcies often allow for different measures providing financial relief. In Michigan, seven cities and school districts have emergency managers, and another three are under consent agreements. Gov. Rick Snyder most recently declared a financial emergency for the city of Allen Park. View our map and story about the state's efforts to turn around the distressed municipalities. 


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  • California, New York Eye Greater Fiscal Scrutiny Over Localities
  • California and New York are considering heavier oversight of their financially troubled cities, according to a Stateline report. Bill Lockyer, California’s state treasurer, wants to create a system that would monitor local finances and issue a warning to flag cities and counties when their fiscal situation becomes troubled. New York’s comptroller, Thomas DiNapoli, wants to score cities based on their financial strain, according to Stateline.



  • Atwater, California Declares a Fiscal Emergency
  • Atwater, California, declared a fiscal emergency and told almost a quarter of its city employees they will lose their jobs as it seeks to avoid becoming the state's fourth city to seek bankruptcy protection.





  • Mapping Municipal Bankruptcies
  • A total of 27 cities and municipal agencies have sought bankruptcy protection since 2010. View a map with details on each filing.



  • Michigan Emergency Manager Law to Stay on Ballot for Now
  • Opponents of the state's toughened emergency manager law scored a victory in the Michigan Court of Appeals on Thursday as they fight to get the repeal of the law on the Nov. 6 ballot. But the issue remains far from settled.

  • Stockton 'Can Avoid Bankruptcy,' Says Councilman
  • Councilman Dale Fritchen, often criticized for his stance as being dead-set against taking Stockton into bankruptcy, said his plan will balance the city's deficit budget without laying off any police officers.







  • Providence Mayor Warns of Possible Bankruptcy
  • PROVIDENCE, R.I. — Mayor Angel Taveras painted a bleak picture Thursday of the city's finances, saying Providence faces "devastation" and could go bankrupt if retiree benefits aren't cut and tax-exempt institutions like Brown University don't pay more in lieu of taxes.

  • R.I. Governor Seeks $400K More for Central Falls Receiver
  • The cost of the state-appointed receiver and legal fees related to bankruptcy proceedings in the Rhode Island city of Central Falls is nearly $400,000 more this fiscal year than budgeted, and the total spent on the receivership is expected to reach $2.26 million by July.



  • Official: Bankruptcy Possible for Harrisburg
  • HARRISBURG, Pa. — The state official in charge of figuring out how to fix an enormous financial shortfall in Pennsylvania's capital city said in a proposed recovery plan released Monday that "significant and difficult" steps lie ahead, and Harrisburg may end up seeking bankruptcy protection.






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Feel free to use any data or visualizations in your own reports with attribution and a link to the source.


Contact: Mike Maciag, mmaciag@governing.com

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