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Federalism and Municipal Bankruptcy

John Allen Livingston writes that many scholars have criticized the U.S. Bankruptcy Code as giving too little power to bankruptcy courts in municipal bankruptcy proceedings. Livingston contends that such criticism is misplaced because giving the courts the authority to increase taxes or reduce services, among other possible reforms, would rest on a constitutionally infirm basis “in light of doctrines of federalism, which protect state sovereignty from federal interference.” Read more here.