People have been getting into debt for as long as there has been money, it seems. The early ways of dealing with debt in the ancient world were horrific. If a man could not repay a debt, the family was forced into slavery. Ancient Greeks felt that they were being fairly kind to debtors as debt-slaves were only sentenced to servitude for five years and were not allowed to be maimed or killed, as could be done to other slaves. The Old Testament decreed that the Jewish people must forgive all debts owed by other members of the community every seven years.
Spain has the distinction of becoming the first sovereign state to declare bankruptcy. Philip II, in the 1500s, thought that bankruptcy worked so well that he did it four times! Lenders during that time were not usually given much choice about loaning money to rulers, who were typically short of funds needed to finance their endless wars.
In the early years of this country, debtor jails were not unknown, but as time went on, attempts were made to come up with a better process. Finally, the Chandler Act was passed in 1938, giving debtors the ability to voluntarily declare bankruptcy and the Securities and Exchange Commission the administration of bankruptcy cases. In 1978, the Bankruptcy Code was given a major overhaul, resulting in the foundation of the bankruptcy system that we have today. Further laws have been passed in the years since as conditions made them necessary.
Chapter 7 Bankruptcy is the most common type filed by individuals. Credit card, medical bills and other unsecured debts would be discharged. Constant phone calls and letters from creditors will be stopped immediately. They will not be able to garnish wages or continue with foreclosure proceedings. All debts cannot be discharged; taxes and student loans will usually have to be repaid regardless of the bankruptcy. The process can be complicated; it is usually best to let an experienced bankruptcy attorney oversee the process.
Dean Snyder, Attorney At Law, has been helping those who need a second chance to rebuild their financial lives for over 20 years. If you are drowning in debt and aren’t sure what options are available, contact this experienced attorney for a free consultation and find out if Chapter 7 Bankruptcy in Fairfield, OH would be the best choice for you.
