Chapter 11 Bankruptcy Process

The first official bankruptcy laws were created under Henry VIII in 1542. Unlike modern bankruptcy laws, the early English bankruptcy laws were designed to punish the debtor. In fact, being bankrupt was considered a crime. Offenders, along with their families, could be put into servitude and lose most of their legal rights. Modern United States bankruptcy laws are far more forgiving. The Bankruptcy Act of 1898 changed the focus of business bankruptcies from punishing the debtor to helping them…