Some have said in the past that tax exempt municipal bonds are an alternative to structured settlements. IBoth represent tax exempt promises to pay periodic payments. Yet unlike municipalities, insurance companies generally CANNOT file for bankruptcy.
Alabama's Jefferson County, which includes Birmingham, the state's largest city, will file for Chapter 9 bankruptcy, the Birmingham News reported in its online edition 348pm on November 9, 2011. The $4.1 billion bankruptcy would rank as the largest municipal-bankruptcy filing in U.S. history, edging out the largest-to-date 1994 filing by Orange County, Calif., which had $1.64 billion in investment losses. The Jefferson County Commission voted 4 to 1 in favor of the filing, according to the newspaper. The county is saddled with $3.14 billion in debt for the expansion and repair of its sewer system.
Copy of Jefferson County, AL bankruptcy petition November 9, 2011
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