The evolution of the bankruptcy system
In ancient Greece, if a person did not pay the debt, he himself and his family would become a "debt slave" and repay the debt with labor. In the tradition of the ancient Jews, if the debts were not paid, forced labor was required. However, every seven years, the debts to the people in the clan can be written off; every seven seven years, that is, 7 years in total, All the internal and external people were forgiven of debts, and all slaves were liberated. This kind of debt exemption after a certain number of years has affected the current bankruptcy system to a certain extent.
The modern "Bankruptcy Law" has gradually evolved from punishment to debtors to an exemption system.
The British Bankruptcy Enactment Act of 1570 stipulates that if the debtor escapes to another place and leaves his original residence, it constitutes fraud. Bankruptcy can be initiated. The judge will sell his property and divide it equally among all creditors; and put him in prison. He was also shown to the public by Daisong, and one ear was cut off.
After the development of capitalism to a certain stage, people began to think that the bankrupts themselves were poor people, and their endless imprisonment did not bring any benefit to the creditors.
The "Anna Bankruptcy Law" enacted in the early 18th century began to impose immunity on bankrupts: honest insolvents can be exempted. After that, the modern bankruptcy law gradually shifted from protecting the rights and interests of creditors to protecting debtors.
And in the United States today, the personal bankruptcy that has been taken for granted by everyone is not just an institutional framework, it is also firmly rooted in American culture.
Excessive consumption and large-scale credit are the basic characteristics of the American way of life. Indebtedness seems to be a matter of course for Americans. Unlike the Chinese people’s habit of "paying with one hand, delivering with one hand," they have countless amounts every month. The bill has to be paid.
In addition, the culture of encouraging entrepreneurship has also continuously driven Americans to join the market and catalyzed the development of the credit industry. Therefore, debt is inevitable. However, the United States pursues a culture of "forgiveness" for bankruptcy. In the American drama "Sisters in Bankruptcy", Max filed for bankruptcy, freed himself from debts and restarted working to support himself. The bankruptcy exemption system freed her from the trouble of old debts, and she could even figure out the business plan of raising 25 yuan to open a cupcake shop. It seems that under the exemption system, applying for a loan is not a problem.