Only the Congress can approve bankruptcy.   They usually defer to a State's decisions about which subordinate jurisdictions can go bankrupt.

Under current Oregon law, only certain water control districts are permitted to go bankrupt.

For the cities and counties to go bankrupt, first the State of Oregon would have to pass a law permitting it.

The SEIU 503 union, the Teachers' unions and all the other public service unions in the State would know that if that happened, all those union retirees, past and future, could lose their retirement money.

Do you think those unions are just going to roll over and say, "Sure, take the money you agreed to pay me 30 years ago?"    Their lawsuits certainly don't indicate that attitude.  

Or do you think that they will point out in no uncertain terms that they have been supporting the re-election of our current members of the Legislature and our Governor for decades and threaten them with being ex-legislators and ex- Governor if they do that?