Beleaguered Idaho County Seeks Chapter 9 Protection

bankruptcy sign 4x3

Beset by legal woes, Idaho’s Boise County is seeking federal bankruptcy protection Chapter 9 municipal bankruptcy protection, the Idaho Statesman reports.

The bankruptcy declaration comes on the heels of $4 million judgment after a federal court ruled the county violated the federal Fair Housing Act by setting unreasonable expectations for the developer of a teen residential treatment centre, according to the AP.

Officials said bankruptcy is the only way the county can provide services while also appealing the ruling. Boise County’s annual operating budget is about $9.4 million.

Filing for Chapter 9 protection is a rare move municipalities in the U.S. – it has happened only about 8 times a year for the past four decades, Bond Buyer reports. Indeed, Boise County might be the first local government in Idaho to declare bankruptcy.

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