Last updated 1 year ago
Are you an overwhelmed debtor or a student of law looking for more information on the history of bankruptcy in the United States? Read through the following to get a brief overview of bankruptcy law in America and how legislation throughout the decades has affected its evolution.
Origins and Precursors
Though the concept of bankruptcy has its origins in ancient Rome, its introduction into United States law is relatively recent. The earliest forms of bankruptcy law in America were based on the existing English equivalent, which allowed debtors to pay off creditors by surrendering their property. However, unlike the English tendency to severely punish individuals for their debt as if they had committed an intentional crime, American bankruptcy laws incorporated some leniency, forgiving specific cases if the debts were discharged in a set period of time.
The Bankruptcy Act of 1898
With the Bankruptcy Act of 1898, individuals gained new protections and rights as debtors. Additionally, certain types of debts were codified, and the number of these that could be discharged without significant consequences were expanded. Forty years later, these bankruptcy types would come to be specified as Chapters 7, 11, and 13. It was at this point that bankruptcy came to be viewed as a vehicle by which debtors could achieve a fresh start.
The Bankruptcy Reform Act of 1978
The Bankruptcy Reform Act of 1978 dealt mainly with the court’s administration and processing of bankruptcy cases and claims. Bankruptcy trustees were given more responsibilities, and the Act also narrowed the focus of the judge to case rulings.
Recent Reforms
The last decade has witnessed several reforms to the original United States bankruptcy laws, the most important of which occurred in 2005. With the Bankruptcy Abuse Prevention and Consumer Protection Act of this year, more restrictions were placed on debtors to discourage the abuse of bankruptcy law, and financial and credit counseling was made mandatory for those seeking the discharge of their debt.
Do you have more questions about the history of bankruptcy law in the United States? Call the lawyers of Pinkston and Pinkston, P.A. at (888) 592-0158 to learn more about bankruptcy’s evolution in American and how the most recent legislation regarding bankruptcy law affects you.
Last updated 1 year ago
We have been investigating myths about bankruptcy for the past several weeks, and with those myths we have posted educational information about bankruptcy laws, what foreclosure means, who has filed for bankruptcy in history, and corrected several other common misconceptions. Check out the re-cap below of all of our bankruptcy myths, and to find out the answers click on the “myth”:
Myth: If I file for bankruptcy will creditors keep calling me?
Myth: If I file for bankruptcy I will lose everything I have.
Myth: You can choose whether you want to include all your debt in a bankruptcy filing.
Myth: If I file for bankruptcy the trustee will seize all of my assets and sell them to settle my debts with creditors.
Myth: Everyone will know and be able to tell I filed for bankruptcy.
Myth: I will lose my house if I file Chapter 7 bankruptcy.
Myth: Consumers can file for bankruptcy several times
If you have any questions about bankruptcy please contact us at Pinkston and Pinkston, P.A. We specialize in Chapter 7 and Chapter 13 bankruptcy, as well as bankruptcy alternatives and pre-bankruptcy counseling. Call us at (888) 592-0158 for more information!
Last updated 1 year ago
Are you struggling with debt? Would you like to know how to avoid foreclosure? If you are interested in learning more on filing for bankruptcy, bankruptcy alternatives, or ways you can fight foreclosure, then check out some of these great resources:
- What exactly does foreclosure mean? Find out with this link from Findlaw.com.
If you have any questions about bankruptcy please contact us at Pinkston and Pinkston, P.A. We specialize in Chapter 7 and Chapter 13 bankruptcy, as well as bankruptcy alternatives and pre-bankruptcy counseling. Call us at (888) 592-0158 for more information!
Last updated 1 year ago
While debt collectors have the right to contact you by phone, fax, mail, or even in person, the United States government holds them legally responsible for certain unfair practices.
In this video, you can watch a helpful overview on the Fair Debt Collection Practices Act. This federal law requires debt collectors to treat all debtors with a certain level of decency. For example, creditors are prohibited from contacting you early in the morning or late at night, as well as at your workplace if your company does not allow personal phone calls.
If you’re being harassed by debt collectors, then Pinkston and Pinkston, P.A. is here to help. Let our debt relief law firm help you get out of debt and uphold your legal rights. Email us or call (888) 592-0158 for more information on our areas of practice.
Last updated 1 year ago
While many individuals tend to shy away from the thought of bankruptcy, filing for personal bankruptcy can actually be a good financial decision under the right circumstances.
In this video, CNN provides an overview on bankruptcy and when to file. The two types of personal bankruptcy are Chapter 13 and Chapter 7 bankruptcy. While Chapter 13 bankruptcy refers to a restructuring of your debts, Chapter 7 bankruptcy removes all preexisting debts through the process of liquidation. Learn which method may best suit your needs and how bankruptcy affects your credit by watching this clip.
For more information on filing for bankruptcy, bankruptcy appeals, or popular bankruptcy alternatives, contact the Pinkston & Pinkston, P.A. bankruptcy law firm online or at (888) 592-0158.
