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What is the History of Bankruptcy? | Illinois Bankruptcy Lawyer

Owing money used to be a much different business, a punishable offense even. As the years went on, however, America made constant revisions as the nature of the market (and its people) began to show themselves fully.

After the Revolutionary War, many were left in financial ruin. The creation of the first federal bankruptcy law in 1800 came with the adoption of the United States Constitution soon after the war. In 1898, that law was expanded to include corporations. It was clear, even to our earliest law makers, that there needed to be some sort of system in place to help people who were in financial trouble.

The laws were once again changed in the 1970s to make it easier for any person or company who needed bankruptcy protection to get it. The result was six times as many bankruptcy cases from 1980 to 2005 as there were before. Despite stricter laws passed in 2005, bankruptcy filings are still on the rise.

As you can see, bankruptcy has been an institution in America. As the credit industry got stronger and harsher, the bankruptcy laws became more inclusive and available. It is nice to know that we live in a country that is willing to provide protection from foreclosure, credit card debt help, and relief from creditors when we need it.

Wondering what the bankruptcy laws look like today? Request a free copy of my Illinois and Missouri bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” to learn what bankruptcy means for the modern hard-working American family.