Estimated Reading Time: 3 min
Although bankruptcy has been in existence for 100 years, few understand its true purpose. Creditors owed money may balk and question why bankruptcy exists. As someone considering filing bankruptcy, the reason may be all too apparent.
The current bankruptcy code was enacted in 1978 as part of the Bankruptcy Reform Act of 1978. This code was a well overdue override of previous bankruptcy codes including the Chandler Act of 1938 and Bankruptcy Act in America from 1898.