Does federal bankruptcy law apply? Can a Section 17 corporation declare bankruptcy? What about tribal bankruptcy laws?
According to some gaming experts, the United States bankruptcy code does apply? Here’s a quote from a news article on the Pequot debt default question:
“From the perspective of creditors, it’s a unique situation,” said Megan Neuburger, an analyst for Fitch Ratings. “It’s murky, but the consensus of legal experts is that a traditional bankruptcy proceeding would not apply to a tribal government.”
Although no court has ruled on the matter, she said, a tribe that’s considered a sovereign nation would likely be deemed ineligible to apply for relief under the bankruptcy code, which specifically excludes “governmental units.”
If federal bankruptcy protection doesn’t apply to tribal governments, what happens then?
Comments appreciated.
Turtle Talk 
Matt, Not sure if you have seen this article or not.
http://www.indiancountrytoday.com/business/55755847.html
In the 1990’s, growing up in Michigan I pondered this very question about sovereign immunity and bankruptcy, or the waiver of sovereign immunity. I think the root of the question is the answer. If tribes are seen as sovereign gov’ts then they have a legal right to waive immunity. If they are seen as dependant domestic status cases of the federal government the issue becomes more complex, but in short is answered by, has the federal government ever enacted any legislation providing Tribes the authority to waive sovereign immunity? Another example for explanatory power would be “home rule” and “statutory rule” local governments. “Home rule” can exercise any power which is not outlawed. “Statutory rule” can only exercise powers implicitly or explicitly authorized by law.
This is a very interesting time, and I would love to discuss this topic further. If your interested, send me an email.