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Colima Travel on The law was later repealed in 1803. Although modeled after English bankruptcy law, American federal laws were less punitive and allowed the debtor to discharge some debts. The rest of the 19th century saw similar bankruptcy laws enacted in response to specific economic crises. Each of these was followed by repeal, usually after the law proved too cumbersome or people figured out ways to defraud the system using the new law. The Bankruptcy Act of 1898 began a new era of bankruptcy laws, favoring the debtor over the creditor and giving the bankrupt party legal protection from those who were owed money. The Great DEPRESSION forced more bankruptcy legislation, with new laws being passed in 1933 and 1934. With the Chandler Act of 1938, Congress revamped the laws. Colima Travel 2016.

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