The history of bankruptcy law in the United States refers primarily to a series of congressional acts concerning the nature of bankruptcy. When the legal regime for bankruptcy in the United States flourished, he moved from a system that viewed bankruptcy as a quasi-criminal act, with a focus on settling and paying off debts for people and businesses suffering huge losses.
Video History of bankruptcy law in the United States
Pre-Independence
In the Thirteen Colonies, the law on payment and debt collection is based on English common law. Debtors who can not pay off their debts have property confiscated and handed over to creditors, or imprisoned.
Maps History of bankruptcy law in the United States
Eighteen and the nineteenth century
After the ratification of the Constitution of the United States in 1789, Congress was empowered under Article I, Section 8, Clause 4 to enact legislation for "uniform laws on the issue of Bankruptcy" throughout the United States. The first law of Congress on this issue is the 1800 Bankruptcy Act, which is limited to merchants and is only provided for unintentional proceedings. This was repealed in 1803. Diplomat Edmund Roberts, President Andrew Jackson's envoy to the Far East, incorporated American concepts of bankruptcy protection into Article VI of the Roberts Agreement with Siam in 1833. Voluntary bankruptcy in the United States was first authorized by Acts 1841 , and 1867. Preliminary Actions and the Bankruptcy Act 1898, known as the Nelson Act, define the modern concept of debtors-creditor relations.
20th century
The Bankruptcy Act of 1938, known as the Chandler Act extends voluntary access to the bankruptcy system, and voluntary petitions are made more attractive to the debtor. The Chandler Act authorizes the Securities and Exchange Commission in the administration of bankruptcy filings.
The Bankruptcy Reform Act of 1978, commonly referred to as the Bankruptcy Code, is a major overhaul of the bankruptcy system. First, it covers cases filed after 1 October 1979. Secondly, the 1978 Act contains four titles. Title I is Title 11 â € <â € Perhaps the most important change to the bankruptcy law under the 1978 Act, however, is the court itself. The 1978 Act drastically altered the structure of bankruptcy courts and granted pervasive jurisdiction to justice. The act provides new jurisdiction over all "civil proceedings arising under the heading 11" or arising out of or relating to the case under heading 11. " 28 U.S.C. Ã,§1471 (b) (1976 ed. Supp.) While the new courts are denominations of the county courts, they are in the practice of free standing courts. Expanded jurisdiction must be implemented primarily by a bankruptcy judge. The bankruptcy judge will continue to be the Article I rate, designated for a specified period of time. The 1978 Act provisions are under supervision in the case of Northern Pipeline Co. v. Marathon Pipe Line Co. , 458 U.S 50, 102 S. Ct. 2858, 73 L. Ed.2d 598 [6 C.B.C.2d 785] (1982). The Court held unconstitutional wide-ranging jurisdiction to the judges of bankruptcy because the judges were not appointed under and protected by the provisions of Article III of the Constitution. Under the United States Constitution, the judges of Article III hold their posts during good conduct (lifetime appointments), and their salaries can not be reduced during their tenure at the office. Article I judges do not enjoy those rights. The jurisdictional challenge begins when a creditor begins a bankruptcy trial, covering issues such as breach of contract, warranty, and false. The bankruptcy court dismissed the defendant's reprimand to dismiss, and the defendant appealed to the District Court. The District Court stated that 28 U.S.C. Ã,§1471 violates Article III of the Constitution for delegating Article III powers to a non-Article III Court by broad grants of jurisdiction to bankruptcy court. In the opinion of plurality, the Supreme Court declares that the broad grant of jurisdiction granted the bankruptcy court by 28 U.S.C. 1471 is an unconstitutional delegation of the power of Article III to the Court of non-Article III. Similarly, Section 241 (a) of the Bankruptcy Reform Act of 1978, by prescribing the jurisdiction provisions set forth in 28 U.S.C. '1471 held unconstitutional. The court retained its verdict until 4 October 1982, to provide "Congress an opportunity to rearrange bankruptcy courts or to adopt other legitimate adjudication means, without disrupting the provisional administration of bankruptcy laws." ID. 458 US at 89. After the stay ends, Congress still fails to act. Instead, the model of "Emergency Rules" was adopted as a local rule by the district court. The purpose of this rule is to avoid the collapse of the bankruptcy system, and it is a temporary measure to regulate the administration of bankruptcy cases and proceedings after Marathon. The rule remained in force until the enactment of the 1984 law on July 10, 1984. Although the constitutionality of the "Emergency Rules" was under constant attack, the Supreme Court consistently rejected certiorari. In 1984, the Congress adopted a "permanent" legislative solution to issues discussed at Marathon by imposing a Bankruptcy Amendment and the Federal Judgeship Act of 1984. With this action, with a few exceptions, such as personal injury trials and claims of false death and matters requiring good consideration Title 11 â € <â € The 1984 Act in many ways resembles the Bankruptcy Act of 1898. Among other things, the law is provided for the re-appointment of separate units for bankruptcy judges under the district court system. Bankruptcy cases pending or filed after 10 July 1984, subject to most amendments relating to bankruptcy jurisdiction. The Bankruptcy Judges, United States Supervisory, and Bankruptcy Family Bankruptcy Act 1986 made substantive changes relating to farmer families and established a permanent US trust system. The 1986 Act applies to cases filed since November 26, 1986. The 1994 Bankruptcy Reform Act applies to cases filed on or after October 22, 1994. The act of reform and legal matters that interpret its provisions have a major impact on the mortgage. banking industry and mortgage loan servicers.
Twenty-first century
See also
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References
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