Mon January 10, 2011
Judge throws out Washington Park village bankruptcy case
A federal bankruptcy judge has thrown out an impoverished southwestern Illinois village's pursuit of bankruptcy protection, ruling that Washington Park does not have authority under state law for that.
U.S. Bankruptcy Judge Pamela Pepper tossed out the village's Chapter 9 case last month.
The St. Clair County community of roughly 5,300 people filed for Chapter 9 protection in mid-2009, citing assets of less than $50,000 and debt of more than $1 million.
Chapter 9 allows governmental units to restructure. Washington Park is home to many strip clubs and pothole-dotted streets. At the time of its bankruptcy filing, it owed trash haulers, the police pension fund and even one of its topless nightclubs.
A message left with the village's attorney in the bankruptcy case wasn't immediately returned.
Washington Park Dump Clean-Up