| In Ancient Israel, every 7th year (Sabbatical year) the | | | | from imprisonment. |
| debtors were forgiven some of their debt and every | | | | In 1283 authorizing the seizure of debtor's assets to |
| 50 years (the Jubilee year) all debts were to be | | | | satisfy debt. If the assets seized were insufficient to |
| discharged, some mortgages released and all | | | | satisfy the debt, then imprisonment of the debtor was |
| indentured servants and slaves were to be released. In | | | | incurred until the debt was paid. |
| the meantime, the family members had the right to | | | | In 1542 in England, the first known bankruptcy law was |
| make payments on any property or persons that had | | | | passed to give creditors options against debtors who |
| been seized to satisfy the debt. | | | | did not pay their debts. Under this law, the debtors |
| In Ancient Greece and Republican Rome, debtors | | | | were considered criminals. |
| suffered death, slavery, mutilation, imprisonment or | | | | In 1570, England passed its second bankruptcy law, |
| exile. Roman Republic Law allowed multiple creditors | | | | among other things; bankruptcy was initiated by the |
| to exhibit a debtor in the forum for three days and | | | | creditor and involuntary for the debtor. Once the |
| divide the debtor up into pieces to satisfy the debt. | | | | debtor's assets were seized, sold and distributed to |
| Evidence exists suggesting multiple creditors could also | | | | the creditors the debtor was not relieved of the debt |
| seize a deceased debtors corpse and hold it ransom | | | | and creditors could continue their collection efforts. |
| from the debtor's heirs until the debt was satisfied. | | | | English debtors prior to 1705 rarely knew forgiveness |
| As Rome became an empire, approximately the | | | | of debt. |
| second century AD, debtor slavery had been | | | | England enacted a statute in which creditors could |
| abolished, debtor prison continued to exist. The debtor | | | | receive a full discharge of debts, while being able to |
| could be held for ransom until friends and family of the | | | | retain exempt property provided certain conditions |
| debtor paid the debt. | | | | were met. |
| In the middle ages, the church proclaimed debt and | | | | In 1823 when Charles Dickens was 12 years old, his |
| insolvency sinful. Debtors were subject to | | | | father was sent to debtor's prison at Marshalsea. |
| excommunication while alive or denial of a Christian | | | | Charles started working in a boot factory for 10-hour |
| burial upon death. Punishment of debtors was | | | | days to pay for his lodging and help support his family. |
| necessary to assist the land-owning and religious ruling | | | | Debtors act of 1869 is an English statute that abolished |
| classes in maintaining their power. | | | | imprisonment for debt except in certain cases, as |
| The first bankruptcy laws arose in the late middle | | | | when a debtor owed a debt to the Crown or a debtor |
| ages. The laws provided the protection of fraud | | | | had money but refused to pay. The statute also made |
| against creditors stemming from an inequitable | | | | it a misdemeanor to obtain credit under false |
| distribution of assets and the protection of the debtor | | | | pretenses or to defraud creditors. |