THE CASE (Page
Municipalities must voluntarily seek
protection under the Bankruptcy Code. 11 U.S.C. §§ 303, 901(a).
They may file a petition only under chapter 9. A case under
chapter 9 concerning an unincorporated tax or special assessment
district that does not have its own officials is commenced by the
filing of a voluntary “petition under this chapter by such
district’s governing authority or the board or body having
authority to levy taxes or assessments to meet the obligations of
such district.” 11 U.S.C. § 921(a).
A municipal debtor must file a list of
creditors. 11 U.S.C. § 924. Normally, the debtor files the list
of creditors with the petition. However, the bankruptcy court has
discretion to fix a different time if the debtor is unable to
prepare the list of creditors in the form and with the detail
required by the Bankruptcy Rules at the time of filing. Fed. R.
Bankr. P. 1007.