Is bankruptcy an option for municipal debt?

January 10, 2011

Produced by Eight Forty-Eight

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Protesters participate in a tax day tea party rally at the Illinois State Capitol.

Any major fixes to transportation may just have to wait given the financial situations facing Chicago and Illinois. Chicago is not alone - local governments across the country are struggling to make ends meet. Some administrations are even talking bankruptcy. But is bankruptcy a good option? Are there other ways to deal with what seems like an insurmountable load of debt? For answers, "Eight Forty-Eight" spoke to Jim Spiotto, a partner at Chapman and Cutler law firm, which specializes in corporate and municipal finance.