During the New Hampshire leg of his book tour, former Gov. Tim Pawlenty said that states should consider declaring bankruptcy so they don't have to pay for pension liabilities.

According to an Associated Press report from New Hampshire at a Republican dinner Monday, Pawlenty said that pension liabilities were a huge reason some states are in a financial mess today.

By declaring bankruptcy, states could then restructure their debt obligations. Pawlenty brought up the bankruptcy idea in response to an audience question.

On Tuesday, Pawlenty suggested limiting Social Security payments for the rich could help bring down the debt.

Pawlenty is in New Hampshire as part of his nationwide book tour, but the state is also where the first presidential primary is held.