A bankruptcy judge has rejected the Chapter 9 bankruptcy filing of sparsely populated Boise County.
Chief Judge Terry L. Myers of the U.S. Bankruptcy Court, District of Idaho, ruled that Boise County failed to prove it was insolvent in order to protect itself from a $4 million legal judgment, according to the Idaho Statesman.
The rural county is located 40 miles away from Idaho’s capital, Boise. The city and county are not connected.
Boise County has no bond debt.
County officials said they were forced to seek bankruptcy protection after losing a federal court case brought by a developer, Alamar Ranch LLC, claiming the county illegally foiled its plans to build a residential treatment facility for substance-abusing teenagers.
A jury found in December 2010 that the county violated the federal Fair Housing Act in trying to limit development of a teen treatment center.
The county’s entire annual operating budget is about $9.5 million.
In its bankruptcy filing, the county listed assets of $27.7 million and liabilities of $7.3 million, including the $4 million judgment and $1.5 million in plaintiffs’ attorneys fees, according to Myers’ decision.
