Bankruptcy is not an option for Harrisburg...at least not a voluntary one and at least not for a little while. 
Voting in line with their parties, the Pennsylvania State House and Senate voted on and passed a bill on fiscal matters which contain a modified, somewhat slimmer version of the Senator Jeffrey Piccola's last minute attempt to turn the well-known Act 47 recovery pan into an outright mandate. The change in langue, then, which the Senator did not himself author but which he does support and which Governor Tom Corbett is believed to be willing to agree to, prevents those municipalities labeled as "finally distressed" by the state from filing bankruptcy at least until June 2012. The goal is to find alternate solutions between now and then so as to avert a bankruptcy altogether. The bill also fails to require officials of the city (or any township which qualifies as third class) to actually implement Act 47. Recall that this blog has discussed Act 47 in the past. The replacement provision was designed in case the General Assembly lacked the time to get the original bill of Senator Piccola to the governor.
The Mayor, Linda Thompson, and other City Council members have been on record as opposing the desires to alter Act 47's process once its implementation has begun; their argument has been that they, as city officials, ought to have a complete opportunity to reach agreement on resolution of the financial issues of during the summer and beyond, if necessary.
Opposition lawmakers, mainly Republicans, highlight that the complete bill remains an option if that agreement is not timely reached. Representative Chris Ross said, "Obviously we'll keep an eye on how things are developing and we'll hope that they get better." If they do not get better, the opposition lawmakers will presumably spring into action and force some serious cuts which the Mayor is presently opposed to.
So, while the current situation in Harrisburg stems a voluntary bankruptcy for now, consider that some bankruptcies can be involuntary. This is generally seen in a Chapter 7 setting. Additionally, where municipalities are concerned, a Chapter 9 is the real option. Recall that Chapter 9 allows a municipality to restructure similar to a Chapter 11, but there are special provisions written in the code that relate expressly to the debtor being a public entity. A Chapter 11, contrastingly, is available to both consumer and business.
If you are struggling with financial issues, as the city of Harrisburg is, you are not alone. Solutions are available. Consider contacting a local bankruptcy attorney to discuss what options may be available to you. You might be surprised to learn how filing a Chapter 7 bankruptcy can help; or how you can probably keep your home in a Chapter 13. Each case is unique and requires time to examine the facts. Doing research on the internet is a great place for you to start and to begin understanding the ins and outs of bankruptcy relief, but speaking with a professional is ultimately the best decision...even if you elect against filing a bankruptcy.
