A Review of Bankruptcy Law in the USA

The first comprehensive federal bankruptcy statute was the National Bankruptcy Act of 1898 and has been the major act covering American bankruptcies until a major overhaul was made by Congress in 1978, a period of about 80 years. It must be mentioned, however, that in 1938 four additional chapters were added to the main 1898 act of the Chandler Act of 1938. The 1938 act also had as its purpose the need for revision of the 1898 statute in order to meet 40 years of changes in social, economic, and business problems. Small business concerns needed attention to, and recognition of, their needs. Bankruptcy arrangements for "individuals," unemployed by the millions by the Great American Depression, also cried out for attention.