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).