Chapter 9 of the Bankruptcy Code provides for reorganization of municipalities (which includes cities and towns, as well as villages, counties, taxing districts, municipal utilities, and school districts).

One significant difference between chapter 9 cases and cases filed under other chapters is that the Bankruptcy Clerk's office does not automatically assign the case to a particular judge. The Chief Judge of the Court of Appeals assigns the Judge. Unlike other chapters, creditors may object to the filing of the petition.

Filing Requirements:

• Petition, List of 20 Largest Unsecured Creditors, List of Creditors (Mailing Matrix), and $1717 Filing Fee (same as chapter 11).
• Chapter 9 Plan and Disclosure Statement - Rule 3016. (Same as chapter 11 except the chapter 9 debtor has the exclusive right to file the plan.)

What To Do:

1. After the case is filed and a bankruptcy case number is assigned:
2. Prepare the Request to Designate a Bankruptcy Judge. The request is signed by the Clerk.
3. Prepare the Proposed Order Designating Bankruptcy Judge.
4. Transmit the signed request, proposed order, and copy of the petition to the Court of Appeals Clerk's office with a copy to the District Court (the copy is to notify District Court in the event inquiries are made by the public or media.) To provide for expeditious assignment, we may want to consider faxing to the court of Appeals instead.
   
   Clerk's Office
   U.S. Court of Appeals
   Room 2722
   219 S. Dearborn Street
   Chicago, IL 60604
   Phone: (312) 435-5850
    
5. Notice of Commencement of the case is sent to creditors and must be published. The court will fix a time for filing objections (45 days from mailing) to the petition which will be included in the notice of commencement document. The court typically enters an order designating who is to give notice, etc. Objections may be filed. The Notice of Commencement should include the objection deadline.
6. If the case is not dismissed, an order for relief will be entered and notice of the order for relief is sent to creditors. If no plan or disclosure statement is on file at the time the order for relief is entered, the court will fix a deadline for filing the documents (60 days). The order for relief will reflect these deadlines
   • There is no meeting of creditors.
   • No trustee is appointed; however, the Court may appoint a trustee if a request is made.
   • The U.S. Trustee's participation will be confined to appointment of a Creditors' Committee.