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Bankruptcy

    Bankruptcy Editor's Picks

    • About Bankruptcy

      Bankruptcy is one of the most unpleasant financial experiences possible. The majority of bankruptcies filed in the United States are voluntary bankruptcies, filed by debtors who, for one reason or another, are unable to honor debts. More and more, bankruptcy is becoming a last resort for debtors as the result of huge medical bills,... more »

    • About Do It Yourself Bankruptcy

      Statistics from the United States Federal Court show a total of 967,831 bankruptcies filed between June 2007 and June 2008. Individuals and families encountering difficult financial circumstances have the option of filing for a discharge of debts under federal law. Those opting for do-it-yourself filings may save a couple hundred... more »

    • How to Stop Bankruptcy

      Prevention is the best solution for bankruptcy. But if creditors get the feeling you're never going to pay them, they can force you or your business into bankruptcy by filing what's called an involuntary petition. The rules and general procedures for involuntary bankruptcy are set forth in Section 303 of the U.S. Bankruptcy Code. Once... more »

    • When Should I Declare Bankruptcy?

      There's no formula that can tell you for certain when you should declare bankruptcy. Each situation is different and the decision should be made carefully. It's important to weigh the benefits and consequences before filing bankruptcy. Consulting with a legal professional could help you do this. While bankruptcy can help some people... more »

    • How to Declare Bankruptcy Twice

      Bankruptcy is meant to be a tool to help individuals who have made critical financial mistakes make a fresh start. There are two main forms of bankruptcy: Chapter 7 (total discharge) and Chapter 13 (reorganization). Under both types of bankruptcy, an individual is able to file twice but there are limitations on how and when this can... more »

    Bankruptcy Quick Guides

    • Bankruptcy 101

      Whether you're searching for consumer or commercial bankruptcy information, we've got you...

    • Bankruptcy 101

      With mounting debt, some people or corporations have no option but to declare bankruptcy....

    • Bankruptcy Guide

      Declaring bankruptcy is one of the hardest things you'll ever have to do. In bankruptcy, you...

    • File Bankruptcy 101

      Tired of struggling with expenses and having annoying phone calls regarding past due...

    Bankruptcy Articles

    Wikipedia

    Bankruptcy

    Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors. Creditors may file a bankruptcy petition against a debtor ("involuntary bankruptcy") in an effort to recoup a portion of what they are owed or initiate a restructuring. In the majority of cases, however, bankruptcy is initiated by the debtor (a "voluntary bankruptcy" that is filed by the insolvent individual or organization).

    History

    History and Development of Bankruptcy
    The concept and origin of bankruptcy law as it is now known in the United States originated in England. The first English bankruptcy law is generally agreed to have been enacted in 1542. (34 and 35, Henry VIII, c.4 (1542) England.)

    Actually, bankruptcy was originally planned as a remedy for creditors — not debtors. During the reign of King Henry VIII., bankruptcy law allowed a creditor to seize all of the assets of a trader who could not pay his debts. Additionally, on top of losing all of ones property, the unfortunate debtor also lost his freedom and was subject to imprisonment for failure to pay his debts. This left the family of the debtor in the position of having to pay the debts in order to obtain the release of the debtor. As time progressed, however, so did the rights of debtors in England. In the 1700s, for example, debtors were often released from prison and many fled to the United States to live. Many immigrated to Georgia and Texas, which became known as debtors’ colonies. Finally, by the early 1800s in England, debtors were often released from prison and their debts discharged. However, for many years, bankruptcy continued to be a remedy favoring creditors, involuntary in nature and largely penal in character. It was generally used only against traders.

    Under the English system, collusive bankruptcy (agreed upon by creditor and debtor) was codified by the English Act of 1825. This also occurred when a trader filed a decla read more at » http://en.wikipedia.org/wiki/Bankruptcy

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