Well aren’t we a smart ass today. I was being polite. Let me try again.
This statement is wrong. Why are you so decieved? How are “creditors” cleansed? They are the ones who get screwed? Or, do you not know what a “creditor” is?
Perhaps the idea is that with bankruptcy, your creditors are wiped away — you don’t have to pay them. The creditors are screwed, but the entity declaring bankruptcy is cleansed of that problem.
But a tendency toward corruption is harder to get rid of. Bankruptcy will not fix that problem.
Perhaps you should pay attention to how the statement is worded. CIB-173RDABN is correct, you shouldn't have to have that statement explained to you. It means that the only thing being "cleansed" by bankruptcy are the debts of the people owing the money. In other words the creditors are "cleansed" from the cities books. Nothing was said about the creditor's being given a good deal. They are screwed. The corruption that caused the debt, however, is still there and will only manifest itself again down the road, with the results of another bunch of creditor's being "cleansed" from the books. Got it now?