Something that came out of a thread about National's bankruptcy by @Cburkhardt is Council bankruptcies.

I think there are two ways they go into bankruptcy.

1) Most councils will climb on board the global settlement agreement that is eventually struck by national. BUT in order to participate, many will have to come up with so much money as part of their share of the settlement that they will be forced into bankruptcy.

2) Councils that survive the initial payouts without the need to go bankrupt are going to face enormous pressure from declining memberships, COVID, insurance premium hikes, and depleting coffers. They'll be bankrupt and merged into other councils (likely) OR restructure their debt and allowed to re-emerge as stand alone councils (very unlikely).

How many will go bankrupt? It is really hard to say to not make is wild speculation. The hard part will be option #2 and forced mergers. I suspect Council A will NOT want to take on a crippled/dying Council B in a merger and may insist that Council B goes through bankruptcy first, settles all claims, and then merges.

2 hours ago, CynicalScouter said:

How many will go bankrupt? It is really hard to say to not make is wild speculation. The hard part will be option #2 and forced mergers. I suspect Council A will NOT want to take on a crippled/dying Council B in a merger and may insist that Council B goes through bankruptcy first, settles all claims, and then merges.

Any council that did approve a merger with another council that hadn't gone through bankruptcy first would be exhibiting a practically criminal level of fiscal irresponsibility and negligence. 

Can a council really declare bankruptcy so that they can pay into the settlement?  I'm trying to imagine how that works.

If a council doesn't have enough lawsuits to make them declare bankruptcy today can they voluntarily enter into a settlement that they cannot afford and then simply go bankrupt?  I'm guessing that they'd be more likely to dissolve the corporation and sell of assets and then allow another council to either purchase their assets or a new council to form.