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Harrisburg Bankruptcy May Be Dismissed on Legal Challenges

The bankruptcy filing by Harrisburg, Pennsylvania, the first state capital to seek chapter 9 protection in at least 40 years, may not survive past November as the state Senate plans a vote today on a takeover of the city’s finances.

The Senate is considering legislation that would make Harrisburg the first Pennsylvania city to go into receivership. Its Rules Committee yesterday voted 11-6 to send the bill to the full Senate for a vote today. If it passes, it will need House approval and the signature of Governor Tom Corbett to become law. Corbett has said he would sign it.