# Can the US government declare bankruptcy?

**URL:** <https://boards.straightdope.com/t/can-the-us-government-declare-bankruptcy/447086>\
**Category:** Factual Questions\
**Created:** [April 27, 2008, 2:48pm UTC](https://boards.straightdope.com/t/can-the-us-government-declare-bankruptcy/447086 "2008-04-27T14:48:15Z")\
**Posts on this page:** 4\
**Page:** 2

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**Author:** ![Little\_Nemo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/little_nemo/32/3120_2.png) [@Little\_Nemo](https://boards.straightdope.com/u/Little_Nemo)\
**Post date:** [April 28, 2008, 5:47pm UTC](https://boards.straightdope.com/t/can-the-us-government-declare-bankruptcy/447086/21 "2008-04-28T17:47:19Z")

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> [@](#):
>
> It depends what you mean by “federal government,” since the federal government has 3 branches.

The OP specified the United States government, so I’m taking him at his word and assuming that the entire federal government is involved.

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**Author:** ![Otto](https://avatars.discourse-cdn.com/v4/letter/o/bbe5ce/32.png) [@Otto](https://boards.straightdope.com/u/Otto)\
**Post date:** [April 28, 2008, 7:11pm UTC](https://boards.straightdope.com/t/can-the-us-government-declare-bankruptcy/447086/22 "2008-04-28T19:11:13Z")

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I did also specify a “department or agency” within the government as well, like, could the Department of Education or the Fifth circuit court or the GAO file. DOesn’t have to be the entire tripartate system crashing all at once.

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**Author:** ![brazil84](https://avatars.discourse-cdn.com/v4/letter/b/8491ac/32.png) [@brazil84](https://boards.straightdope.com/u/brazil84)\
**Post date:** [April 28, 2008, 8:02pm UTC](https://boards.straightdope.com/t/can-the-us-government-declare-bankruptcy/447086/23 "2008-04-28T20:02:33Z")

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[QUOTE=Little Nemo]  
The OP specified the United States government, so I’m taking him at his word and assuming that the entire federal government is involved.  
[/QUOTE]

Well, when people say that the United States government filed a suit against Microsoft, it’s kind of understood that it’s the executive branch that made the decision to file suit and will be prosecuting the suit.

If all 3 branches were in on the deal, then clearly the government can file bankruptcy, since it’s the judicial branch that gets to interpret the Constitution and the Bankruptcy Code.

When somebody asks whether the government CAN file bankruptcy, I think it’s reasonable to assume that they are asking whether they are asking whether the executive can do so, consistent with the Constitution and bankruptcy code as interpreted by the courts.

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**Author:** ![Little\_Nemo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/little_nemo/32/3120_2.png) [@Little\_Nemo](https://boards.straightdope.com/u/Little_Nemo)\
**Post date:** [April 28, 2008, 8:03pm UTC](https://boards.straightdope.com/t/can-the-us-government-declare-bankruptcy/447086/24 "2008-04-28T20:03:25Z")

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No, I don’t think any specific segment of the government could go bankrupt. In economic terms, the entire government is a single entity. Considered as independent entities, the Department of Energy or the Supreme Court or the Air Force have never been financially balanced; their income (if any) has never matched their expenses. They are all dependent on other government agencies to collect revenue and pay for their expenses.

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