The History of Bankruptcy

For as long as there have been debts, there have been those who have struggled to keep up with their outstanding financial obligations. Though these persons have often been vilified, the reality is that their economic challenges are often caused by factors that are distinctly beyond their own control.

Medical emergencies, serious injuries, job losses, and shifts in consumer taste all have the potential to undermine an otherwise successful and responsible person’s efforts to keep up with his or her arrangements with creditors. Though bankruptcy is viewed today as a mechanism to help debtors, this has not always been the case.

The Arizona bankruptcy lawyers of the Harmon Law Office, L.L.C. have the skills and experience necessary to help you to determine the best way forward from a presently overwhelming financial predicament. Contact us at 480-829-0494 to schedule a free initial consultation, during which we can discuss your concerns and begin to understand the make-up of your monetary woes

Landmarks in Bankruptcy History

Much of the legal system as we presently know it began to take shape in ancient civilizations and has simply been updated and adapted to recognize changing perceptions of both legality and morality. On this scale, bankruptcy law is a fairly recent innovation and it has already changed dramatically from its beginning. Initially, it was exclusively a remedy for creditors and they had the power to compel debtors into bankruptcy involuntarily. Some of the key landmarks in bankruptcy history include:

• 1542 – first bankruptcy law passed in England grants creditors the right to seize a debtor’s assets and subject him or her to imprisonment; applied to merchants who could not pay their debts
• 1700s -1800s – imprisonment for debtors began to be relaxed and eventually debtors were released from prison and the debts discharged
• 1825 – first joint bankruptcy laws in which debtors and creditors agree to filing are passed in England
• 1841 – introduction of voluntary bankruptcy to United States law
• 1938 – passage of the Chandler Act, which begin substantial expansion of bankruptcy protections for debtors
• 1978 – the Bankruptcy Reform Act of 1978 significantly altered both the provisions and the structure of bankruptcy administration in the United States

Contact Us

Imagine waking up and being free from financial worry over unmanageable debts. Make that happen. Contact the Arizona bankruptcy lawyers of the Harmon Law Office, L.L.C. today at 480-829-0494.