Did you know that bankruptcy is mentioned in the United States Constitution? In other words, bankruptcy is constitutional. The United States Constitution states: “[The Congress shall have Power] to establish . . . uniform laws on the subject of Bankruptcies throughout the United States.” Look it up! U.S. Constitution, Art. I, Section 8, clause 4.
The Framers wanted to ensure that there would be a uniform system of bankruptcy so that one state would not put someone in debtor’s prison for a debt that was discharged in another state.
For you history buffs, James Madison, in Federalist Paper No. 42, wrote about how important uniform bankruptcy laws would be for the regulation of commerce in the United States. In this article, the power to pass and regulate bankruptcy was mentioned in the same paragraph as the power to issue currency and regulate the use of foreign currency.
The first bankruptcy law was passed in 1800 and only lasted until 1803. Another bankruptcy law was passed in 1841 and lasted until 1843. Yet another bankruptcy law lasted from 1867 to 1878. The first permanent bankruptcy law in the United States was passed in 1898, which lasted until 1978. In 1978, the current structure of bankruptcy laws were enacted, replacing the structure that had existed for eighty years. In 1984, 1986, 1994, and 2005, the bankruptcy act was revised, but the basic structure remained intact. The 2005 act added the means test and limits on restructuring vehicle loans.
To read more, take a look at some of my other articles: no more debtors’ prison in Ohio, can debt collectors harass you, save your home from foreclosure, can you lose your home in bankruptcy, Ohio legislature passes law to protect homes, and can you go to jail for not paying payday loans. I have successfully handled the bankruptcy needs for my clients, including the more complicated ones, as set forth in the case highlights section. Attorney Gigiano’s hard work has resulted in highly successful results for many of his clients, as reflected in the following links to his reviews: Daniel Gigiano reviews; Daniel Gigiano ratings; and Daniel Gigiano work.
Attorney Gigiano is a Medina County bankruptcy attorney in Wadsworth, with his office located at 102 Main St., Ste. 200, Wadsworth, Medina County, Ohio. If you have questions about this or other questions you need answered by a Wooster bankruptcy attorney near Orrville or an Akron bankruptcy attorney near Barberton, please call Attorney Daniel F. Gigiano at 330-336-3330.