Bankruptcy History

Historical Antecedents of the Bankruptcy Code

The idea of giving relief to debtors whose financial difficulties are not necessarily of their own making is as old as recorded history, involving a recognition that financial difficulties have to do with both a debtor and a creditor, and that at least where bad luck has been the precipitating event, both should contribute something to a resolution of the problem. Bankruptcy law developed more formally in the Italian city-states during the Renaissance and was a statute that had its focus on bankruptcy as criminal behavior. Discharge of indebtedness first appeared in English law in 1705 and then in a bankruptcy law available only to commercial debtors. Only in relatively recent years has relief under the bankruptcy laws become generally available to all citizens, with a general discharge from debt available to honest debtors without regard to how foolish they may have been. The principal purpose of the bankruptcy law was long assumed to be a just or equal distribution of the bankrupt's property among creditors, with the bankrupt's discharge a wholly secondary objective.

The Constitution of the United States reserves to Congress the right to enact uniform laws respecting bankruptcy, but if Congress fails to act, then the matter is at least in some respects open to the states. For much of the nineteenth century no federal bankruptcy act was in effect, which led to a confusing array of state bankruptcy and debt moratorium statutes.

San Diego, California

Welcome to San Diego, California's second largest city. Where blue skies keep watch on 70 miles of beaches and a gentle Mediterranean climate begs for a day of everything and nothing. Bordered by Mexico, the Pacific Ocean, the Anza-Borrego Desert and the Laguna Mountains, San Diego county's 4,200 square miles offer immense options for business and pleasure.

Bankruptcy: A legal declaration

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

 

Chapter 7 Chapter 13
  • Are you spending almost all of your income to pay living expenses?
  • Are you behind on your home loan? (Need to stop foreclosure and save your home)
  • Are creditors calling and demanding money that you need to feed yourself and your family?
  • Do you owe taxes or student loans that do not meet the requirements for a discharge?
  • Is there no money left to pay credit cards, medical debt or judgments?
  • Do you want to protect a friend or relative who co-signed for you?
  • Are wages needed for living expenses being garnished by a creditor?
  • Do you need to bring current child or spousal support payments?
  • Was your debt incurred involuntarily, as by sudden calamity or illness?
  • Do you have debts incurred by reason of drunk driving or fraud?
  • Have you had a recent job loss or a marital break-up?
  • Do you need to protect non-exempt assets?
  • Have you suffered emotional distress from creditor harassment and are you eligible for relief under 7?
  • Have you previously filed Chapter 7 within the last eight years?

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 About Us

The bankruptcy attorneys of the Pacific Bankruptcy Center, serve clients in Southern California, including San Diego County, San Bernardino County, and Riverside County; and the cities of San Diego, Riverside, San Bernardino, Chula Vista, National City, El Cajon, La Mesa, Mission Bay, Hillcrest, Ramona, Julian, Escondido, San Marcos, Vista, Oceanside, Encinitas, Solana Beach, Del Mar, Rancho Bernardo, Rancho Santa Fe, La Jolla, Pacific Beach, Ocean Beach, Little Italy, Old Town, Mira Mesa, North Park, Temecula, and Carlsbad.

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Bankruptcy News

Chapter 7, stop foreclosure, stop harrassment, stop repossessions, stop telephone calls, stop lawsuits, stop utility shutoff's, stop annoying debt collectors, unfreeze bank accounts, regain your financial future, wipe out debt, chapter 13, "0.00 down with a wage order and balance paid through a trustee as part of the payment plan and not paid directly to the attorney, stop foreclosure and other legal proceedings, cram down secured liens,cure over extension of credit, overspending,eliminate medical debt.