Bankruptcy History

THE BANKRUPTCY REFORM ACT OF 1898

In 1898 a Bankruptcy Act was passed which, with substantial amendment, remained in effect until the 1978 adoption of the bankruptcy Reform Act as a substantive re-enactment of the bankruptcy law. By the time the Bankruptcy Act of 1898 was adopted, many of the early questions concerning constitutionality of the bankruptcy laws had been resolved. "Inclusion of corporations, extensions of bankruptcy to all classes of individual debtors, compositions, state exemptions of property - all were now fully recognized as within the Constitutional power of Congress." This Act was amended some 50 times. The Great Depression produced three major amendments to it in the form of § 77 dealing with railroad reorganizations, § 77B dealing with corporate reorganizations, and the Frazier-Lemke Act dealing with farmer debtor relief. The bankruptcy Act and its amendments recognized, albeit inadequately, a new policy in the bankruptcy law, the recognition in business cases that many businesses could be rehabilitated rather than liquidated, and the recognition in consumer cases that the most important objective was a fresh start for honest but unfortunate bankrupts. In business bankruptcy cases this led to a belief that it was preferable to reorganize rather than to liquidate business debtors as long as that objective could be accomplished without an impermissible invasion of the rights of creditors. The tension between the rights of creditors on one hand and the reorganization policy on the other has been played out over much of the 20th Century by lawyers.

 

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?

 

 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.