Ind. senator to push for municipal bankruptcy law - WDRB 41 Louisville News

Ind. senator to push for municipal bankruptcy law

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INDIANAPOLIS (AP) -- Indiana lawmakers will likely consider a proposal that would allow local governments to file for bankruptcy when they reconvene in January.

Republican Sen. Ed Charbonneau of Valparaiso says he will introduce a measure that would make bankruptcy an option for distressed municipalities with no other choices.

The Times in Munster reports Indiana is one of 22 states that don't allow local government bankruptcies.

Charbonneau says Detroit's bankruptcy filing last month shows such cases are possibilities and that it's important to have measures in place.

He says adding bankruptcy as an option can pressure a state-appointed emergency manager and local officials into making the hard choices necessary to avoid bankruptcy.

Copyright 2013 Associated Press. All rights reserved.

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