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Showing posts from November, 2011

News : Troubled Harrisburg now state's problem

5 Print Comment By Tami Luhby @CNNMoney November 23, 2011: 5:30 PM ET A judge dismissed a bankruptcy filing by the Harrisburg City Council. NEW YORK (CNNMoney) -- A federal judge Wednesday dismissed a bankruptcy petition filed by Harrisburg's City Council, saying that it violated state law. The ruling now paves the way for the state to deal with Harrisburg's massive debt problem. A Pennsylvania court should decide by mid-December whether to approve Gov. Tom Corbett's candidate to serve as receiver for the troubled capital city. The council, which has repeatedly tried to keep the state out of Harrisburg's affairs, had hoped to retain some control and force creditors to forgive some of the debt. But federal bankruptcy Judge Mary France ruled the council's action was not authorized by state law, which prohibited the city from filing for bankruptcy. She also said the petition would not have been legal because it was not approved by the may