Can PR declare bankruptcy?

Puerto Rican national debt is now approximately $74 billion, but unlike mainland municipalities, Puerto Rico is not protected by Chapter 9 of the U.S. Bankruptcy Code and cannot file for bankruptcy.

Is Puerto Rico protected by the US Constitution?

Specifically, although people born in the Commonwealth of Puerto Rico are natural born U.S. citizens, their citizenship is not protected by the Citizenship Clause of the 14th Amendment to the U.S. Constitution. As such, the American citizenship of Puerto Ricans can be taken away by the U.S. Congress unilaterally.

What rights does Puerto Rico have as a US territory?

As a result of Puerto Rico’s status as a U.S. territory, the citizens of Puerto Rico do not have any voting representation in the U.S. Federal government. Instead of outright representation through Senators and House Representatives, Puerto Rico has one non-voting Resident Commissioner in the House of Representatives.

Is Puerto Rico still in debt?

Puerto Rico’s $70 billion public debt could go down to $34 billion, while debt from the Public Buildings Authority and general obligations bonds could be reduced to $7.4 billion, from $18.8 billion. That debt was accumulated after decades of excessive borrowing, mismanagement and corruption.

How much is Puerto Rico’s debt?

Puerto Rico’s public debts totaled just over $70 billion when the Puerto Rico Oversight, Management, and Economic Stability Act (P.L.

Does Puerto Rico follow US federal law?

Puerto Rico is an unincorporated territory of the United States. Most but not all federal laws apply to Puerto Rico. In addition to the U.S. Constitution, which is the supreme law of the U.S., federal laws include statutes that are periodically codified in the U.S. Code.

What laws does Puerto Rico follow?

When Puerto Rico became a US territory, it incorporated the common law system. This created a mixed legal system in which common law and civil law are blended. This system is what prevails today. Civil law is applied for family law, divorce, child custody, real property law, and contractual law, among others.

Can US territories pass laws that override US laws?

It may legislate directly with respect to the local affairs of a territory or it may transfer that function to a legislature elected by the citizens thereof, 326 which will then be invested with all legislative power except as limited by the Constitution of the United States and acts of Congress.

How large is Puerto Rico’s debt?

Puerto Rico’s public debts totaled just over $70 billion when the Puerto Rico Oversight, Management, and Economic Stability Act (P.L. 114-187; PROMESA) became law on June 30, 2016. Most of those debts are now in the midst of perhaps the largest restructuring of public debt in U.S. history.

Is Puerto Rico filing for bankruptcy?

Puerto Rico has filed for bankruptcy. Bankruptcy won’t be an easy process. A judge still has to approve it. Many prominent Wall Street firms own Puerto Rico’s bonds. They are angry about the bankruptcy filing because they fear now they won’t get paid back all the money they are owed. Puerto Rico’s situation is ugly.

How much does Puerto Rico owe its creditors?

Puerto Rico currently owes its creditors a whopping $70 billion, far higher than Detroit’s $18 billion bankruptcy in 2013. “Given the deficit that we have inherited, it is my responsibility to guarantee the best interests of the Puerto Rican people,” Governor Ricardo Rosselló said Wednesday.

What is the biggest bankruptcy in US history?

Puerto Rico has filed for bankruptcy. It’s the biggest municipal bankruptcy filing ever in the US. Puerto Rico currently owes its creditors a whopping $70 billion, far higher than Detroit’s $18 billion bankruptcy in 2013.