[E. Pluribus Unum]

The Feds will never allow states to declare bankruptcy.

Now that the Feds are in charge of student loans, student loans are the ONLY debt you cannot escape through personal bankruptcy.

Debt is control, and the federal government is all about control.

[MichaelP]

Make that any federal debt

Mike

[TaxPayer2000]

Now that the Feds are in charge of student loans, student loans are the ONLY debt you cannot escape through personal bankruptcy.

However, someone could pay off thier student loans with a credit card and then file for bankruptcy.........just sayin......

[no-s]

The Feds will never allow states to declare bankruptcy.

I don't know about Illinois, but California has an out if the state gov't leadership and Attorney General dares it. The state retains the option ( in state law, preempts any contract provision to the contrary) to renege on contracts based on fraudulent statements or tainted by conflict of interest.

IMHO, almost every bond issue, every pension obligation, etc taken on in recent years could potentially fall under that umbrella. The incestuous nature of state politics almost completely insures there a skeletons in every single closet (heheh). Of course it might hit too close to home for some politicians currently in office...