Case Study on bankruptcy

This article provides an overviewof four county governments under the United States governance. Thefour counties are experiencing major consequences of bankruptcy. Thecore of the structure of the government plays a big role as a resultof the existing experiences of the counties. The government has beenmandated with local tax allocation, a move that was decided early in1901. This agreement acts as a limitation to the country governanceas they are unable to expedite local decisions in regards toallocation of resources. Part of the court rulings plays a part incrippling the economies of the counties. Major projects that were setas an expectation of development and job creation, ended upparalyzing the services in the counties. The projects included, thesewage systems in Alabama, the stadium, historical museum andincinerator at Harrisburg and the extensive pledges issued byDetroit.

The Jefferson country owed anamount of 4.2 billion against its population of 658,000 people, theHarrisburg owed 1.5 billion against a population of 50,000individuals , while the city of Stockton, led 300,000 citizen againstthe chapter 9 after having difficulties trying to promote an expensesaving policy. Detroit owed 18 billion, this was the highest amongstall counties considering that it is the 18thlargest city in America.

In consideration to chapter 9,some solutions were provided to mitigate the bankruptcy situation.The Debtors of the Alabama County agreed to settle on a lesser amountagainst their debt. The Harrisburg proposed proceeding with theproject though the idea came to a halt, latter the court taxed theresidents to recover the debt. The city of Stockton announced a moveto abandon the regulations under chapter 9 while Detroit faces aninjection of tax increment if decisions on voluntary taxing will notbe implemented.