The History of Bankruptcy in America - Westgate Law

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The History of Bankruptcy in America

America is no stranger to bankruptcy; in fact, it’s been an ever-present entity throughout American history. This country is no stranger to financial trouble or doing what is necessary to recover from financial disaster. One thing that has changed in regards to bankruptcy in America is the face of those behind the filing.

Bankruptcy is actually a part of the constitution so it’s not a new phenomenon. But back when our forefathers were creating the most memorable of governmental documents, debt wasn’t something that was readily available to all citizens. Bankruptcy back in the days of our founding forefathers was for businesses; working class citizens didn’t utilize debt. It simply wasn’t offered. The exclusive nature of bankruptcy changed by the end of World War II when the phenomenon of “debt” expanded to individuals. Many Americans sought comfort from mounting debt and financial obligations at this time through the seemingly new option of bankruptcy.

Bankruptcy laws were altered in 2005, tightening the reins on the growing popularity of bankruptcy, but it still provides relief for countless Americans unable to see a way out of insurmountable debt. Bankruptcy has been an option since the very beginnings of our great nation, but some would argue that it has never before been so needed.

If you find that you are in need of a tried and true solution to financial disaster, consider the relief available through filing for bankruptcy with an experienced Southern California bankruptcy attorney. Having an experienced Westgate Law attorney on your side will mean maximizing the chance to get a fresh start financially. You won’t be the first American to take advantage of the benefits of bankruptcy, but you’ll enjoy your fresh start just as much as they did back in the days before “working class citizens” had access to debt.

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About the Author

Justin Harelik

Justin has a singular goal: to get people out of financial distress and move them to financial stability and prosperity. He does this by combining 15 years of in-depth experience in bankruptcy, credit management, debt negotiation and student loan modifications, and he does it with both English and Spanish-speaking clients.

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