subject: Lincoln's Bankruptcy [print this page] Individual bankruptcy in the U.SIndividual bankruptcy in the U.S. acts to "relieve the honest debtor from the weight of oppressive indebtedness, and permit him to start a fresh free from the obligations and responsibilities consequent upon business misfortunes" and to present consumers "a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of pre-existing debt." Local Loan Co. v. Hunt, 54 S.Ct. 695 (1934).
There were a number of great people in history who took advantage of the fresh beginning that the bankruptcy laws provide for. Probably one of the foremost is Abraham Lincoln. Deemed by a large number of historians to be the country's finest leader, great luck didn't always smile on Abraham Lincoln.
At age twenty-two, Lincoln arrived in New Salem, Illinois where he made his income doing odd jobs around the small town and working as a shopkeeper. In 1832, the store in which he worked closed. Lincoln along with a business partner opened up their own general store in New Salem. They acquired their inventory from other shops on credit and incurred a large amount of debt.
In 1833, the store failed and Lincoln's partner died, leaving him encumbered with the debt. Lincoln declared bankruptcy later on that year. The good news is for consumers today, the bankruptcy laws now offer the discharge of most unsecured debt. But, Abraham Lincoln needed nearly seventeen years to pay off the debt from the unsuccessful shop.
It goes without saying, Abraham Lincoln overcame his monetary obstacles. However, many individuals who should consider bankruptcy options do not even view it as an alternative because of the conditioning that personal bankruptcy is the scariest thing that can happen to them and should only be considered as a last measure.
But actually, bankruptcy is a reasonable choice for many people. Lincoln is historic proof that individuals can overcome personal bankruptcy and achieve great things in their lives. The truth is, Lincoln subsequently helped numerous people declare bankruptcy as part of his law practice.
Bankruptcy, in most circumstances, can completely wash the slate of credit card debt and other unsecured debt. And, because of bankruptcy exemptions, the majority of people do not surrender any of their property in bankruptcy.
Consumers experiencing the "weight of oppressive indebtedness" can get the fresh beginning the bankruptcy laws intend, and proceed in life to accomplish their objectives.
