Newt Gingrich Proposes that States Should be Allowed to File for Bankruptcy

In a radical move Newt Gingrich, former Speaker of the House, is putting his political weight behind a new bill that would make it possible for states to file for bankruptcy. If this were made possible than states would be limited to the amount of money in bailouts in regards to former employee's pension funds and other benefit promises.

In addition to Gingrich, Americans for Tax Reform, based out of Washington, has joined the former politician in backing this bill. Together they are working with people inside and out of Congress to get the bill introduced to the floor sooner rather than later.

Grover Norquist, president of ATR, adds that "It's in the short-term and long-term interests of government workers and taxpayers to start these reforms now, rather than having to pick up the pieces after a crash landing."  States that are currently struggling, like Kansas, New Hampshire and Oklahoma, would benefit from this legislation if passed.

Are you thinking about filing for bankruptcy in Chicago?  If so, contact our law office to consult with a Chicago bankruptcy attorney.