Chapter 12 of the Bankruptcy Code (Federal) forbids it.
As the law currently stands, States cannot go bankrupt.
“As the law currently stands, States cannot go bankrupt.”
That may be true, but the congress has the power to rewrite or nullify Chapter 12. Different legislatures have rewritten or added various clauses to the bankruptcy law over the years, which proves my point that no congress is bound by the actions of a previous congress.
And it’s time for a congress to exercise its legislative power and rescind hundreds of illegal laws passed by liberals.