It's no secret that major law firm bankruptcy practices are ramping up for a historic rise in Chapter 11 filings, workouts and other restructuring work as industries are battered by the COVID-19 pandemic.

Controversial comments by the Senate majority leader last month raised the possibility that restructuring lawyers could also gain a new clientele: state governments.

States can't file for bankruptcy under the current bankruptcy code. But after Kentucky Sen. Mitch McConnell said that some struggling states may have to consider a Chapter 9 filing instead of counting on a federal bailout—remarks that were rebuked as overtly partisan by lawmakers on both sides of the aisle—restructuring attorneys have nevertheless been gaming potential scenarios.