Is illinois going bankrupt?

David Skeel Jr., a University of Pennsylvania law professor who has long championed granting federal bankruptcy protection to states, told Bloomberg that “Bankruptcy lets you get ahead of the problem.” And if ever there were a perfect candidate for such an approach, it would be Illinois. read more

Illinois residents may feel some solidarity with the likes of Puerto Rico and Detroit. A financial crunch is spiraling into a serious problem for Illinois lawmakers, prompting some observers to wonder if the state might make history by becoming the first to go bankrupt. read more

In short, Illinois is on the verge of filing for Chapter 9 bankruptcy, which could shut down the entire state. The actual cause of much of the state's financial problems originated in 2011 when the state, led by Gov. Pat Quinn (D), decided to hike the tax rate to address a looming pension shortfall as well as offset a $12 billion deficit to account for a $35 billion state-wide budget. read more