Bankruptcy: Your Constitutional Right to a Fresh Start

Did you know that the idea of bankruptcy — of every person deserving a “fresh start” — was put into our Constitution by the Founding Fathers? They wanted to make sure that everyone had the same opportunity for a second chance at prosperity. Doesn’t that make you feel good: that the founders of our country wrote in bankruptcy protection from the beginning? And it is protection; protection against people and businesses that take advantage of consumers; protection against unforeseeable circumstances; protection against illness, natural disaster and unplanned events. Of course, a law can’t stop something bad from happening to you, but it can stop the hurt from continuing and give you the relief you need to get out from under the situation. If you need help deciding when to file bankruptcy, Moran law can help.

The History of Bankruptcy

Bankruptcy isn’t a modern concept; the need to give citizens a second chance has been around for thousands of years. The oldest written record of bankruptcy comes from King Hammurabi, the ruler of Babylon in 1760 B.C. While “The Code of Hammurabi” lists many harsh punishments for various crimes, it offers a debtor the chance to pay off his debt in three years.

The idea of discharging debt is even outlined in the Old Testament:

“At the end of every seven years you must cancel debts. This is how it is to be done: Every creditor shall cancel the loan he has made to his fellow Israelite. He shall not require payment from his fellow Israelite or brother, because the Lord’s time for cancelling debts has been proclaimed.”

– Deuteronomy, 15:1-2

Bankruptcy is nothing to be ashamed of; in fact, it’s a concept that’s been around for thousands of years, and it’s your current Constitutional right. Take a look at some famous fresh starts to see how other people have used bankruptcy to start over and move on to great success!