Bankruptcy laws have changed significantly since the early twentieth century, and even since the mid to late 1900s, amendments and jurisdictions have altered how bankruptcy cases in the U.S. are processed. To an individual or small business unfamiliar with the bankruptcy system, the information involved in bankruptcy laws can seem complicated, tedious, and even confusing. To unravel the complexities of the bankruptcy code, Behm Law Group, Ltd. offers legal advice and assistance for those considering filing for bankruptcy in Marshall, MN.
In the past century, there have been several major changes to the U.S. bankruptcy system. Among these legislations, three main acts deserve recognition:
- The Bankruptcy Act of 1938, or the Chandler Act, gives individuals and businesses the agency they have today for voluntarily filing bankruptcy petitions. This act opened filing to a wider range of debtors and made it easier and more appealing to file for bankruptcy. The basis of the act was to make it beneficial to file for debt reorganization overseen by a court-appointed trustee.
- The Bankruptcy Reform Act of 1978, or the Bankruptcy Code, significantly changed the bankruptcy system. Not only did it replace the Bankruptcy Act of 1898, it also established much of today’s Title 11 standards, changed the structure of U.S. Bankruptcy Courts, forbid employment discrimination against those whom have filed for bankruptcy, and served to regulate the majority of bankruptcy cases filed under Chapter 7 and Chapter 13.
- Bankruptcy Amendments and Federal Judgeship Act of 1984 was established to alter the 1978 Act and amend any flaws. This legislation is still considered the most permanent and major act affecting the U.S. bankruptcy system and allows for the direct application of all current amendments that relate to any bankruptcy case in question. The act of 1984 also affected how changes are made to the system in accordance with social, economic, and technological growth (credit cards, etc).
While these three acts are all major in U.S. bankruptcy history, there are still many other amendments involved in Title 11 bankruptcy cases, including numerous changes made between 1984 and today, particularly the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. For more information about filing for bankruptcy in Marshall, MN, contact Behm Law Group, Ltd. at (507) 387-7200 today.