Harrisburg, PA Files for Chapter 9 Bankruptcy In a somewhat divisive move, the Harrisburg City Council voted 4-3 to file for Chapter 9 bankruptcy. Harrisburg is the capital of Pennsylvania, and is currently attempting to file for Chapter 9 bankruptcy, the chapter specifically created for municipalities. Chapter 9 provides protection from creditors while the municipality reorganizes its debts. Mayor Linda Thomson and the state are opposed to the bankruptcy filing, wishing instead to create and implement a fiscal rescue plan. The state is serious enough in its opposition to attempt to take control of Harrisburg. The state house has passed a bill that would allow the state to take control of Harrisburg and establish a fiscal rescue plan. Next week, the state senate will decide whether to pass the bill. A primary reason that Harrisburg has become so indebted is the city’s trash incinerator facility, a project that cost almost $300 million. The incinerator has not brought in the revenue it was expected to.
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