While bankruptcy is used today for people in all sorts of circumstances, it was once considered criminal behavior. Before bankruptcy laws were enacted in the late 19th century, people were typically forced into bankruptcy against their wills and labeled as outcasts in society. 

However, as countries like the United States faced economic troubles in the late 1800s, bankruptcy laws were enacted to help people settle their debts. While many indebted people had the option to file for bankruptcy under these laws, many individuals and businesses chose not to file for various reasons.

For instance, some people were still worried about the stigma associated with bankruptcy, while others did  not believe bankruptcy offered a beneficial strategy. 

Bankruptcy filings became increasingly popular in the second half of the 20th century, especially after the passage of the Bankruptcy Reform Act of 1978. This United States leglislation created one of the most debtor-friendly systems in the world. Because of the new system, the stigma associated with bankruptcy has been reduced and people are now more willing to file for bankruptcy. 

If you are considering filing for bankruptcy, contact the Austin bankruptcy lawyers of Slater Kennon LLP, at 512-338-1100.