Why Did The Us Create The Bankruptcy Laws?

Bankruptcy didn't begin as it is today

Bankruptcy didn't begin as it is today. The protection from foreclosure, credit card debt help, and relief from creditors that are a part of bankruptcy protection today came in later years. Originally, bankruptcy was meant to protect creditors.

If you owed a debt to a creditor, he or she could simply take your assets to pay off your debts. Bankruptcy got its start in the United States after the Revolutionary War left many indebted to creditors. In 1800, around the time of the US Constitution, congress created the first federal bankruptcy laws. The bankruptcy laws, however, remained mostly to help creditors. The credit industry, though, started to turn into the giant industry that it is, causing the bankruptcy laws to shift protection. The bankruptcy laws were adjusted in the 70s to make it easier for individuals or corporations to ask for protection.

Eventually those laws became what we know as Missouri and Illinois Chapter 7 and Chapter 13 bankruptcy today. Though stricter laws were passed in 2005, bankruptcy has still been a great way for families to get out from under crushing amounts of debt.

Not everything that is important about bankruptcy can be deduced from the history books, though. The laws shifted focus to the debtors for a clear reasonCongress understood that the credit industry was at such an advantage that the average person had no chance of standing up to them. As you know, one little bump in the road can have your creditors practically knocking down your door trying to collect your debt. A St. Louis, Missouri bankruptcy attorney can help you get the strength to fight back.

Now that you understand the origins of bankruptcy, it may be easier to see how it shouldn't be considered a shameful process, as many believe. It is protection that has been made available when and if you need it. You aren't doing anything wrong by filing Missouri or Illinois bankruptcyif that were the case, federal law wouldn't be designed to protect you?

If you are wondering, "Should I file bankruptcy?" don't stop your research with the history of bankruptcy. After you know where bankruptcy comes from, you must also learn what it has become today. A great St. Louis bankruptcy attorney in your area will be able to provide you with reliable information that applies to your specific situation whether it is through a free consultation or a publication.

by: Jim Brown

POST COMMENT

How To Reestablish Credit After Bankruptcy What To Do When Bankruptcy Is The Last Choice? What Is Chapter 7 Bankruptcy? Bankruptcy basis Credit Card Debt Facts – Know Your Facts And Avoid Bankruptcy Avoid Bankruptcy And Eliminate Debt – Proven Tactics For Debt Relief Detroit Bankruptcy Lawyers: Can I Pick And Choose Which Credit Cards to File Bankruptcy On? Why So Many Debt Consolidation Clients End Up Filing Bankruptcy How a Company declares Bankruptcy? Hire California Bankruptcy Lawyer Bankruptcy Laws: Must understand the facts Debt Relief Bankruptcy - What Debts Are Exempt From Bankruptcy? The Best Way to Stop Foreclosures And Why You Shouldn't Use Bankruptcy