Marshall Creek, a tiny Denton County town of 431 residents, filed for municipal bankruptcy on January 23rd. The town owes debts of approximately $400,000 to four creditors, including the IRS and the Trinity River Authority.

The town’s only sources of income are property taxes, traffic tickets and water bills and most of the town’s residents are elderly, retired and live on fixed incomes. In order to save Marshall Creek, town leaders decided that bankruptcy was the best option. Annexation was discussed, but the median income and average home value are substantially lower than the surrounding communities and residents fear that their properties would be lost.

Since Congress revised municipal bankruptcy laws in 1930s, fewer than 500 cities have filed for protection.

For further information from a Fort Worth Star Telegram article, please go to www.dfw.com/mld/dfw/13698854.htm

Ray