While bankruptcy is certainly a modern word, the concept of forgiving debt dates back to ancient times. Understanding the history of bankruptcy will give you an appreciation for its evolution in American culture and economics. For instance, financial struggles were once an issue that individuals had to overcome alone. Today, however, consumers can rely on the help of a bankruptcy attorney to settle their debt and experience financial freedom. So how exactly did bankruptcy become the powerful tool it is today?
A Human Tradition of Debt
Before the term “bankruptcy lawyer” even existed, the first recorded history of debt forgiveness is found in the Old Testament. According to the book of Leviticus, Moses referenced a Jubilee, which would occur once every five years and eliminate all debts and free those in slavery. From Greece to ancient Rome, variations of debt forgiveness – or in some cases debt-exchange – took hold in culture. In fact, the most popular theory for the origin of the word bankruptcy is that it originates from the Latin word “bancus” (bench) and “ruptus” (broken).
By 1542, laws concerning debt forgiveness were passed, creating the first modern day understanding of bankruptcy, though hiring a bankruptcy lawyer was still an unknown option. It wasn’t until three centuries later that bankruptcy laws would be introduced in the United States, as a response to bad economic conditions in 1800. The concept of debt forgiveness was so controversial, however, that the first bankruptcy law was actually repealed in 1803. If wasn’t until 1841 that a second bankruptcy law was passed.
As the American economy continued to develop, and technology changed the way that international economies interacted, bankruptcy laws became more complex. Finally, it became standard to rely on a bankruptcy lawyer to navigate through the legal jargon and lawful process to settle debt. With the help of a bankruptcy lawyer, Americans were able to settle the process without having to worry about the technical details of filing. A record number of bankruptcies in the 1980s and 1990s would further solidify the role of a bankruptcy lawyer, making bankruptcy lawyers your biggest allies in debt solutions today.
Today, many people have sought guidance with their path to financial freedom with help from an experienced Tampa bankruptcy lawyer.