Being Informed About Debt Consolidation Loans is the First Step Towards a Best Deal.
Though online loans brought in convenience to borrowers, trusting a particular lender for his services was made far more difficult. Having to deal with a virtual person through ones computer left little of personal bonding between lenders and...
Debt Consolidation Don'ts You Should Know About
Many Americans are in debt, in fact most of them are to varying degrees. And, most want to get out of debt and choose debt consolidation programs as one option to help them reduce their monthly payment and get back on the path to debt repayment....
How To Avoid The Pitfalls Of Creeping Debt
Reducing debt usually isn't a high priority for people until they have already gotten into trouble with overspending. Using a few basic guidelines, and debt calculations, can help you see when your debt load is getting into the danger zone. ...
Small Business Debt Collections Law Trap
When someone owes your small business money, you certainly feel like a victim. But did you know that if you aren't careful, you could break the law by trying to get the money back? How to Break a Federal Debt Collection Law You have a small...
Top Strategies for Managing Debt during a Financial Crisis
To survive times of financial crisis, it is crucial to keep in mind the two most important imperatives. First, don't panic; second, set your priorities. A calm thoughtful approach to your family's evaluating necessities becomes your priority in...
Debtors Prison, a Brief History of Bankruptcy
In Ancient Israel, every 7th year (Sabbatical year) the debtors
were forgiven some of their debt and every 50 years (the Jubilee
year) all debts were to be discharged, some mortgages released
and all indentured servants and slaves were to be released. In
the meantime, the family members had the right to make payments
on any property or persons that had been seized to satisfy the
debt.
In Ancient Greece and Republican Rome, debtors suffered death,
slavery, mutilation, imprisonment or exile. Roman Republic Law
allowed multiple creditors to exhibit a debtor in the forum for
three days and divide the debtor up into pieces to satisfy the
debt.
Evidence exists suggesting multiple creditors could also seize a
deceased debtors corpse and hold it ransom from the debtor's
heirs until the debt was satisfied.
As Rome became an empire, approximately the second century AD,
debtor slavery had been abolished, debtor prison continued to
exist. The debtor could be held for ransom until friends and
family of the debtor paid the debt.
In the middle ages, the church proclaimed debt and insolvency
sinful. Debtors were subject to excommunication while alive or
denial of a Christian burial upon death. Punishment of debtors
was necessary to assist the land-owning and religious ruling
classes in maintaining their power.
The first bankruptcy
laws arose in the late middle ages. The laws provided the
protection of fraud against creditors stemming from an
inequitable distribution of assets and the protection of the
debtor from imprisonment.
In 1283 authorizing the seizure of debtor's assets to satisfy
debt. If the assets seized were insufficient to satisfy the
debt, then imprisonment of the debtor was incurred until the
debt was paid.
In 1542 in England, the first known bankruptcy law was passed to
give creditors
options against debtors who did not pay their
debts. Under this law, the debtors were considered
criminals.
In 1570, England passed its second bankruptcy law, among
other things; bankruptcy was initiated by the creditor and
involuntary for the debtor. Once the debtor's assets were
seized, sold and distributed to the creditors the debtor was not
relieved of the debt and creditors could continue their
collection efforts.
English debtors prior to 1705 rarely knew forgiveness of debt.
England enacted a statute in which creditors could receive a
full discharge of debts, while being able to retain exempt
property provided certain conditions were met.
In 1823 when Charles Dickens was 12 years old, his father was
sent to debtor's prison at Marshalsea. Charles started working
in a boot factory for 10-hour days to pay for his lodging and
help support his family.
Debtors act of 1869 is an English statute that abolished
imprisonment for debt except in certain cases, as when a debtor
owed a debt to the Crown or a debtor had money but refused to
pay. The statute also made it a misdemeanor to obtain credit
under false pretenses or to defraud creditors.
In America up to the mid 1800's you could go to prison for not
paying your debts. In 1898 the Bankruptcy Act allowed both
voluntary and involuntary cases. Debtors could keep exempt
property and discharge virtually all debts. In 1938 the bankruptcy laws were
overhauled by Congress and the law that exists today is the
Bankruptcy Act of 1978. Several amendments and changes have
been since then. About the author: