A (Very Brief) History of Bankruptcy Law BANKRUPTCY THROUGH THE AGES
Most early bankruptcy practices were not kind to debtors. In Ancient Greece, if a man could not pay his debts, he, his family, and his servants were forced into “debt slavery” until the creditor regained their lost investment through physical labor. Meanwhile, in East Asia, the laws of Genghis Khan decreed that anyone who went bankrupt three times would face the death penalty. This harsh treatment of debtors continued throughout history. In England, the first bankruptcy laws passed under King Henry VIII in 1542 viewed bankrupt individuals as criminals. Common punishments ranged from debtor’s prison to the harsh sentence of death. Even bankruptcy laws in the United States prioritized recovering the investments of a creditor and were harsh to bankrupt individuals. The federal government passed a number of bankruptcy laws in response to economic hardships in 1800, 1841, and 1867, all of which were repealed just a few years later.
Bankruptcy in America wouldn’t begin to focus on rehabilitating troubled debtors until 1934, when the U.S. Supreme Court determined bankruptcy laws were meant to give debtors a “fresh start.” The decision of Local Loan v. Hunt stated, “[I]t gives to the honest but unfortunate debtor … a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of pre-existing debt.” Since this decision, bankruptcy laws often limit the punishment of debtors. The Chandler Act of 1938, the Bankruptcy Reform Act of 1978, and the Bankruptcy Tax Act of 1980 all aimed to streamline the bankruptcy process and protect debtors, whether the debtor is an individual or a company. Bankruptcy law changed a lot over the centuries and continues to change today. There are bills being discussed right now which could transform various aspects of bankruptcy, including the Discharge Student Loans in Bankruptcy Act of 2015, which would
add protections for borrowers in the private student loan market, and Financial Institution Bankruptcy Act of 2017, which would change the way large institutions transfer debtor’s assets. Whether these acts will pass is still uncertain, but no matter what changes are made to bankruptcy law, you can count on your bankruptcy lawyer to stay well-informed. If you have any questions or concerns, don’t hesitate to call 205-705-3590 today.
Hebrews 12:4-12 In your struggle against sin, you have not yet resisted to the point of shedding your blood. And have you completely forgotten this word of encouragement that addresses you as a father addresses his son? It says, “My son, do not make light of the Lord’s discipline and do not lose heart when he rebukes you, Endure hardship as discipline; God is treating you as his children. For what children are not disciplined by their father? If you are not disciplined — and everyone undergoes discipline — then you are not legitimate, not true sons and daughters at all. Moreover, we have all had human fathers who disciplined us and we respected them for it. How much more should we submit to the Father of spirits and live! They disciplined us for a little while as they thought best; but God disciplines us for our good, in order that we may share in his holiness. No discipline seems pleasant at the time, but painful. Later on, however, it produces a harvest of righteousness and peace for those who have been trained by it. Therefore, strengthen your feeble arms and weak knees. because the Lord disciplines the one he loves, and he chastens everyone he accepts as his son.”
GRILLED MEXICAN STREET CORN Recipe of the Month:
Make the most of these remaining summer weeks and take dinner outside to the grill! You don’t need to visit the fair for this delicious, classic street food.
Ingredients • ¼ cup mayonnaise • ¼ cup sour cream • ½ cup finely crumbled feta cheese • ½ teaspoon chili powder Instructions 1. Set burners of gas grill to high heat and allow to preheat for 5 minutes. 2. Combine mayonnaise, sour cream, cheese, chili powder, garlic, and cilantro in large bowl. Stir until well combined and set aside. 3. Place corn on hot grill, rotating occasionally. Grill until cooked
• 1 medium clove garlic, minced • ¼ cup finely chopped cilantro leaves • 4 ears corn, shucked • 1 lime, cut into wedges through and charred in spots on all sides, for about 8 minutes. 4. Transfer corn to bowl with cheese mixture and use large spoon to evenly coat each ear on all sides. Sprinkle with extra cheese and chili powder and serve immediately with lime wedges.
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Recipe inspired by goodhousekeeping.com.
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