Why Did the US Create the Bankruptcy Laws?

Nowadays, Missouri and Illinois bankruptcy is a federal law that provides protection from foreclosure, credit card debt help, and relief from creditors to average, hard-working American families. However, when the bankruptcy laws were originally put forth in England, they were to protect the 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. The first federal bankruptcy law was created in 1800 with the adoption of the United States Constitution. The bankruptcy laws, however, remained mostly to help creditors. However, as the credit industry gained more power, the bankruptcy laws shifted focus and began to provide more help to debtors. 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.



The history books don't tell you everything that you need to know about bankruptcy, though. The laws shifted focus to the debtors for a clear reason-Congress 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 bankruptcy-if 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.





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Missouri Bankruptcy attorney James Brown has been working to relieve the debt of hard-working American families for over 15 years. He has dedicated his career to educating consumers about options for debt relief and has released 5 publications, including, "Get Out of Debt: Secrets Your Creditors Don't Want You to Know." You can request a free copy at http://www.castlelaw.net