Parker Live News from the Parker Strip since 2009.
Another U.S. county, in a similar predicament as La Paz County, has filed for Chapter 9 bankruptcy, the Idaho Statesman reports:
In a move rare in the United States and perhaps unprecedented in Idaho, Boise County, ID is filing for federal protection against a multimillion dollar judgment.
“This was not our first option. This was our last option,” said Jamie Anderson, chairwoman of the three-member Boise County Board of Commissioners. “This protects us so we can continue to operate.”
Chapter 9 protection, from a section of federal code expressly for financially distressed municipalities, means that creditors can’t collect while the county is developing a plan for reorganizing its debts.
Dan Chadwick, an attorney and executive director of the Idaho Association of Counties, said he is not aware of any other county, city or taxing district in Idaho ever filing for bankruptcy. He’s been with the association for 20 years and before that was at the Attorney General’s Office for 10 years, he said.
It is unclear at this time whether La Paz County will seek Chapter 9 bankruptcy to protect it from Yakima’s judgment against it. Many have speculated that the action may be beneficial to the County.
