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Kecskemet Travel on The 1570 law passed because the earlier statute put so many people in prison that it became a national epidemic. The penalties, however, were no less severe. All assets were taken, sold, and distributed to creditors. Bankruptcy officials even had the right to break into a person’s home to seize property that could be used to repay debts. Unlike today’s less hostile version of bankruptcy, there was no discharge of the remaining debt, regardless of the penalty the debtor faced. Debt collection continued until all creditors were satisfied. As the debtors’ prisons filled, new forms of punishment took place that did not include jail time. Kecskemet Travel 2016.