BANKRUPTCY IS INTERESTING: AND HELPFUL -a brief (7 Paragraph) History)
The contemporary American Bankruptcy Code (11 U.S.C. Sec. 1101 et seq.) provides for the most simple, straightforward situations as well as extremely complicated ones. Bankruptcy laws can now be used not only to get out of debt; but also, to get out of contracts; get out of leases; get repossessed property back; get drivers’ licenses back; stay out of jail; give priority to a new lender over current ones to encourage them to give you money to help keep you afloat; sell troubled property without those troubles coming back on you; pay back your debts in full or in part under a new, more manageable time frame schedule; catch up on your back taxes or child support; save your business while you remain in charge and keep it going; protect your co-signers; remove liens from your property; get out of divorce property settlement orders; protect your property you want to keep or get rid of property that you no longer want.
Bankruptcy is a legal tool that has been part of America since its founding. It is specifically referenced in our U.S. Constitution. Thomas Jefferson went bankrupt. So did a riverfront supply store owned and operated by Abraham Lincoln and a business partner. Later, as a lawyer, Lincoln represented many clients filing for bankruptcy. Bankruptcy certainly was an improvement to the debtor’s prisons back in Europe.
As bankruptcy law developed over the years, it grew increasingly complex because America’s financial system and business practices grew more sophisticated and complex. Alexander Hamilton was the first real Secretary of the Treasury. Later, during the administration of President Andrew Jackson, America developed a National Banking System. Businesses began operating as corporations and other structures that separated ownership from management.
The twentieth century saw the democratization of credit. People no longer had to be rich to purchase items they wanted on credit. Ordinary middle class citizens were able to get credit cards; nowadays almost everyone has them. Banks began to consolidate into huge banks (“too big to fail”) and powerful computers let the banks keep track of minute financial details of their customers.
Bankruptcy is the way that American law came up with and uses to get a fresh start when things go wrong. Our country was founded by people seeking a new beginning (“fresh start”), fleeing from places where things went wrong for them.
As American business and finance became more sophisticated and complicated, American Bankruptcy Law likewise had to become more sophisticated and complicated. Nowadays you regularly see on TV news that airlines, car companies, real estate moguls, sports teams, rappers, retail chains and even entire cities use various kinds of bankruptcy laws to restructure their money troubles and start over.
As stated in the opening paragraph, the contemporary American Bankruptcy Code (11 U.S.C. Sec. 1101 et seq.) provides for the most simple, straightforward situations as well as extremely complicated ones. The attorney specialists at Pollak, Hicks & Alhejaj, P.C. are masters of both. The firm has filed thirteen thousand (13,000) or so bankruptcy cases over their thirty plus (30+) years in business and have helped countless others avoid having to file. We, better than anyone, are waiting to help you.