Everyone knows what chapter 7, 11 and 13 are (or think they do). Some know that chapter 12 is for family farmers and fishermen, and chapter 15 is for foreign bankruptcies. What about chapter 9?

Pennsylvania’s capital files for Chapter 9 bankruptcy

Chapter 9 bankruptcy is a special section that only applies to political subdivisions smaller than a state (counties, municipalities, etc.). The effects are the same also, an automatic stay preventing any collection activity and a discharge of its debts. I expect we will see more chapter 9 filings in the future.