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American states are already free to seek shelter in bankruptcy court

APRIL 30, 2020 | by Edwin Schindler | THE NEW YORK SUN

Op-ed by Edwin Schindler, includes “In one famous case, Trenton v. New Jersey, the Supreme Court in 1923 concluded that a ‘municipality is merely a department of the State’ and that the state ‘may withhold, grant or withdraw powers and privileges as it sees fit.’ … If a ‘state’ can create a ‘municipality’ having the ability to declare bankruptcy in a federal court what logic would deny the state that created the ‘municipality’ the right that it granted the political subdivision it created …”

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