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Abstract: The Bankruptcy Code draws a firm line between "municipalities" and other entities. In reality, numerous entities exist that could be categorized as falling somewhere between a purely public municipality and a private entity. This incongruence between theory and practice creates two primary sets of problems. First, when a "blended entity" seeks to file for bankruptcy, the relief it receives from the bankruptcy system, if any, may be practically inappropriate or constitutionally suspect. Second, blended entities' use of the bankruptcy system creates uncertainty, which parties and courts can capitalize on to manipulate the system. The result is incoherent bankruptcy law, which in turn spurs more uncertainty. This cycle of uncertainty, manipulation, and incoherence parallels that which is occurring in larger bankruptcy cases involving business debtors. This Article is the first to take an in-depth look at blended entities and the problems that ensue when they attempt to use a bankruptcy system that does not contemplate their existence. In doing so, it contributes to the larger debate about the usefulness of the current Bankruptcy Code in light of manipulation of the bankruptcy laws and exposes a core weakness in the Code's inability to recognize the blended nature of many of the entities that form the backbone of the U.S. economy, providing the services the public has come to rely on in everyday life.
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