Bankruptcy for states in question | Daily Chronicle

Interesting legal argument.

But there are constitutional hurdles that would be hard to overcome, said Douglas Baird, a law professor at the University of Illinois at Chicago.  “A state may contract debt but, typically speaking, you can’t go to an Illinois court and sue the state of Illinois to collect the debt, and you can’t go to federal court to sue a state and collect the debt because states have what’s called sovereign immunity,” Baird said.

If you’re immune from suit, then you don’t need bankruptcy because your creditors can jump up and down but they’re not going to be able to do anything because they can’t seize your assets or do stuff like that anyway,” he said.
This immunity makes bankruptcy for states unnecessary, according to opponents of the plan

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