Bankruptcy isn't just an option for people and business - cities (and other government entities) can file. It doesn't happen too often, but since the financial crisis we're seeing it more and more.
San Bernadino appears to be on its way to succeed, The city is moving towards a confirmation hearing, on a case that began in 2012. Nearly 4 years to come up with a plan to handle the debt and obligations of the city - not something you'll see in Chapter 13. The most famous civic bankruptcy is Detroit's.
Even though the language is the same (confirmation, discharge), different chapters of bankruptcy operate very differently. For most of my clients, Chapter 13 ends up being their best option - the simple reorganization. It gives them the chance to payoff a car, get caught up on a house, deal with back taxes, AND get rid of debt. Unlike bigger reorganizations, they are not forced to get votes from creditors - so long as everyone is treated fairly under the law, there's nothing to complain about.