Today, Congressman Deutch (FL-21) signed on as a cosponsor of the Puerto Rico Chapter 9 Uniformity Act. This legislation will allow Puerto Rico the authority to restructure its debts.

Chapter 9 of the Federal Bankruptcy Code allows all state governments the authority to restructure the debts of government owned corporations.  However, Puerto Rico is currently exempted as a U.S. territory. With Puerto Rico currently $72.6 billion in debt and its credit ratings degraded to junk, a legal framework is needed for municipalities to adjust their debts.

A copy of H.R. 870 is available here.