Municipal Bankruptcy: Some Basic Aspects
![handle is hein.journals/urban10 and id is 298 raw text is: 266
Municipal Bankruptcy:
Some Basic Aspects*
Ronald David Greenberg
Assistant Professor, Columbia Business School;
Counsel, Delson & Gordon, New York City;
Vice Chairman of Committee on Taxation,
Section of General Practice, American Bar Association;
B.S., University of Texas (1957); M.B.A., Harvard Business
School (1961); J.D., Harvard Law School (1964).
I. Introduction: The Present Bankruptcy Law
A. Generally
BANKRUPTCY IS A LEGAL DEVICE THAT has roots reaching back to
Roman law in ancient times ( 118 B.C.) and that has existed in the
United States in some form throughout most of its history.' The
United States Congress derives its power to enact bankruptcy legis-
lation from the United States Constitution.2 In addition, the states
have the authority to administer those aspects of bankruptcy or in-
solvency that are not covered by federal legislation.3
Since the first comprehensive bankruptcy statute passed in 1898
by Congress, which has remained the basic bankruptcy law (as
amended) in the United States, the purpose of the Bankruptcy Act
has been to permit the discharge of the bankrupt debtor from his
debts and to provide for the equitable and prompt distribution of
his remaining assets, if any, among his creditors. The Bankruptcy
Act would appear to be intended to provide relief for all parties,
creditors and debtors alike.4 Its provisions, therefore, are interpreted
*This article is based on research conducted by Columbia University
under a Ford Foundation Grant on a project for the Temporary Commis-
sion on City Finances regarding New York City. The views expressed are
those of the author and do not necessarily reflect those of Columbia Univer-
sity, the Ford Foundation, the Temporary Commission, or those contained
in any report to the Commission. The assistance of Ralph Coti, Columbia
Business School 1977, is gratefully acknowledged.
1. See 8 C.J.S. Bankruptcy § 2 (1976); see also Countryman, A History
of American Bankruptcy Law, 81 COM. L.J. 226 (1976) [hereinafter cited
as Countryman]; M. CONANT, THE CONSTITUTION AND CAPITALISM 184-
208 (1974) [hereinafter cited as CONANT].
2. Congress shall have Power ... to establish . . . uniform Laws on the
subject of Bankruptcies throughout the United States.... U.S. CONST.,
art. I, § 8, cl. 4.
3. See, e.g., D. ENGDAHL, CONSTITUTIONAL POWER: FEDERAL AND STATE
3-5 (1974) [hereinafter cited as ENGDAHL].
4. See, e.g., CONANT supra note 1, at 184-87, 190-91.](ViewImageLocal?handle=hein.journals/urban10&div=24&collection=journals&method=preview&ext=.png&size=3)
What Is HeinOnline?
Contact us for annual subscription options:
Already a HeinOnline Subscriber?
profiles profiles most
Municipal Bankruptcy: Some Basic Aspects
Contact us for annual subscription options:
Already a HeinOnline Subscriber?
profiles profiles most