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4 Bumps

What happens if the State you live in goes bankrupt?

Mounting Debts by States Stoke Fears of Crisis

Carolyn Kaster/Associated Press

Debt payments related to a failed incinerator, left, made Harrisburg, Pa., consider bankruptcy this year.

By MICHAEL COOPER and MARY WILLIAMS WALSH
Published: December 4, 2010

The State of Illinois is still paying off billions in bills that it got from schools and social service providers last year. Arizona recently stopped paying for certain organ transplants for people in its Medicaid program. States are releasing prisoners early, more to cut expenses than to reward good behavior. And in Newark, the city laid off 13 percent of its police officers last week.

http://www.nytimes.com/2010/12/05/us/politics/05states.html?_r=1&src=me&ref=homepage

 
tasches

Asked by tasches at 6:01 PM on Dec. 6, 2010 in Politics & Current Events

Level 48 (298,202 Credits)
This question is closed.
Answers (14)
  • If all the citizens were able to pay off our mortages and other late payments, pay off car loans, pay off credit card debts, ect, wouldn't that help the companies if everyone did that?

    ***
    I'm sorry, but assuming debt is purely OPTIONAL. No one forced you to buy a home, rack up credit card debt, student loans, car loans, etc!! Credit companies are in the business to MAKE money! I realize many people have fallen on hard times, but I also feel much of the DEGREE to which they have fallen has much to do with how much they overextended themselves, and how little money they had saved?!
    LoriKeet

    Answer by LoriKeet at 9:42 PM on Dec. 6, 2010

  • Not gonna worry about it. I live in Texas, and even though it's bad, I doubt that would ever happen. We'd secede before we'd file bankruptcy.
    cbk_mom3

    Answer by cbk_mom3 at 7:11 PM on Dec. 6, 2010

  • I bet the governors of those states are wishing they didn't accept any of Obama's STIMULUS money!!! You see, while the stimulus may have provided jobs or the propping up of business and industry, as that money runs out, the state's are going to have to pick up the tab, in order to continue to employ and prop up those individuals and business in the fashion they've grown accustomed to!
    LoriKeet

    Answer by LoriKeet at 7:22 PM on Dec. 6, 2010

  • Agreed Lori! We have a payments but what we've got doesn't compare to my friend in Arlington that got a mortgage she couldn't really pay for and had to go into foreclosure.
    BlueCollarMama

    Answer by BlueCollarMama at 9:47 PM on Dec. 6, 2010

  • I dunno.
    Hell....GA got cold and people are standing in lines EVERYWHERE here looking for handouts, panhandling, and begging for food at grocery stores.
    jewjewbee

    Answer by jewjewbee at 6:03 PM on Dec. 6, 2010

  • That should say a few payments LOL can't type tonight to save my life LOL
    BlueCollarMama

    Answer by BlueCollarMama at 9:47 PM on Dec. 6, 2010

  • Not to totally sidetrack, but I know there's at least one person here who lives in PA and is constantly insisting the economy there is peachy. Makes you wonder how many people really aren't paying attention to what's going on around them.

    As to the question - no state has ever filed, yet. The fed would have to wing it as they went along if one does.
    NotPanicking

    Answer by NotPanicking at 6:10 PM on Dec. 6, 2010

  • That would suck. Glad I don't live in a state that is such dire straits. Iowa is not perfect but it is ranked as one of the top 10 well ran states. We have our issues but the news here is not all gloom and doom like in many places.
    Anonymous

    Answer by Anonymous at 6:25 PM on Dec. 6, 2010

  • I live in Michigan and the city I live also laid off just a littler over half of our police force. We have a total of 64 homicides, and at lasdt count, I think we only have approx 67 or so officers on the street. The city has been increasing taxes so they can finally get a old building to come down at the tax payers expense. Its an extra I think $60 a yr. Saw tonight we are going to have an increase ouir water payments from $45 or so a month to $100 a month. The economy is the worst in the state and unemployment. My DH has a job but they got him working 1 day a week, just in time for x-mas. Lousy Mother Fer's I do not know what we are gonna do. Our mortage co Bank of America really SUCKS!!! We have a programn called "the hardest hit" its to help people keep oiur homes. All other lenders are in on it but BOA. They claim they are 'thinking' about it. Hope they don't hurt anything.
    ""
    Michigan-Mom74

    Answer by Michigan-Mom74 at 7:14 PM on Dec. 6, 2010

  • And UNFORTUNATELY outgoing governor Rendell, accepted $29 BILLION for PA....UGH! This is NOT going to end well.


    Well, MAYBE if incoming governor Corbett, takes a page out of NJ's Governor, Christie and has the cajones to cut government excess and "non-essential" (read: unproductive) employees we CAN weather this storm and not go bankrupt!!


     


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    LoriKeet

    Answer by LoriKeet at 7:30 PM on Dec. 6, 2010