In Illinois , Municipalities With More Than 25,000 People Can't Declare Bankruptcy Under Chapter 9

Capitol Fax reports:

According to the BGA, there have been 660 Chapter 9 filings nationwide since 1937. Chapter 9 is a form of bankruptcy for local governments. Illinois doesn’t allow local governments to file Chapter 9 unless they successfully navigate a lengthy and complicated procedure (and even then, no towns over 25,000 are allowed into that procedure)

You'll want to click on the links and read this one. As of now , some creditors may be hearing this from Illinois municipalities in the future: "the check is in the mail."