The Italian nomination of bankruptcy indicates its origin from the words Banca rotta means broken bench or bank. In ancient times, if a man used to owe some amount and become unable to repay, his family was usually forced to be a part of debt slavery until the debtor pays for his losses with physical labor. Though the debt slavery was limited to five years and they used to get life and limb protection, unlike the general slavers.
Put to Death
The first statute was the Statute of Bankrupts of 1542, which deals with bankruptcy, and it was passed in England. As per the conditions set, three-time bankrupt people used to bear the death penalty. According to Philip II, another evidence of bankruptcy comes from the Spanish four state bankruptcies of 1557, 1560, 1575 and 1596. Also, its history is visible from Europe, Egypt, Russia, and Turkey. Generally, Spain is considered as the very first sovereign nation which declared it.
Shorten Jail Time
In 1813, there was an act of Insolvent Debtors in England that ensured the release of debtors from jail after 14 days with the promise not to increase their assets worth more than £20, but when creditors objected, the debtors had to stay in jail. The Bankrupts England act of 1825 allowed the debtors to file their bankruptcy proceedings by agreeing with the creditors. Then came a series of laws that made bankruptcy a boon for people, including the Joint Stock Companies Act 1844 and the Joint Stock Companies Winding act of 1844.
Eventually, the Joint Stock Companies Act 1856 worked to consolidate companies’ legislation and gave birth to the modern law of corporate insolvency. The last deed was done by the Bankruptcy Act 1869 that permitted the general population to file bankruptcy instead of merely traders.
These days it is much simpler to file bankruptcy. We no longer face prison time, or to be placed in a slavery situation to repay our debt. If you would like information on how to eliminate your excessive debt, contact a Plano bankruptcy attorney.