In spite of one’s best efforts, occasional defaults and bankruptcies are hard to avoid in high yield and distressed municipal investing. This chapter provides an overview of a bondholder’s rights and remedies in the event of a workout or municipal bankruptcy situation under Chapter 9 of Title 11 of the United States Code (U.S.C. Title 11, or the Bankruptcy Code). The historical incidence of Chapter 9 filings is examined in detail, along with some related accounting issues. To assist the municipal bond investor who is already acquainted with corporate bankruptcies, some of the key differences between Chapter 9 and Chapter 11 are also discussed.