Lincoln’s Bankruptcy

August 12th, 2010 | Author: John Kunes

Consumer bankruptcy in America serves to “relieve the honest debtor from the weight of oppressive indebtedness, and permit him to start a fresh free from the obligations and responsibilities consequent upon business misfortunes” and to provide individuals “a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of pre-existing debt.” Local Loan Co. v. Hunt, 54 S.Ct. 695 (1934).

There were many great individuals in history who took advantage of the new start that the bankruptcy laws provide for. Probably one of the greatest is Abraham Lincoln. Deemed by a great number of historians to be America’s greatest leader, good luck didn’t consistently smile upon Abraham Lincoln.

At age twenty-two, Lincoln arrived in New Salem, Illinois where he made his income doing odd jobs around the small town and working as a shopkeeper. In 1832, the store in which he worked closed. Lincoln along with a business partner opened up their own general store in New Salem. They acquired their inventory from other shops on credit and incurred a large amount of debt.

In 1833, the store failed and Lincoln’s partner died, leaving him encumbered with the debt. Lincoln declared bankruptcy later on that year. The good news is for consumers today, the bankruptcy laws now offer the discharge of most unsecured debt. But, Abraham Lincoln needed nearly seventeen years to pay off the debt from the unsuccessful shop.

It goes without saying, Abraham Lincoln overcame his economic obstacles. But, many individuals who should be thinking about bankruptcy options do not even view it as an alternative due to conditioning that bankruptcy is the worst thing that could happen to them and really should only be considered as a last option.

But actually, bankruptcy is a good choice for a number of people. Lincoln is historic proof that individuals can overcome personal bankruptcy and achieve great things in their lives. The truth is, Lincoln subsequently helped numerous people declare bankruptcy in his law practice.

Bankruptcy, in many situations, can completely wash the slate of credit card debt as well as other consumer debt. And, due to bankruptcy exemptions, the majority of individuals don’t surrender any of their property in bankruptcy.

Consumers experiencing the “weight of oppressive indebtedness” can get the fresh beginning the bankruptcy laws intend, and proceed in life to accomplish their objectives.

Looking for a Chicago bankruptcy lawyer? Visit ChicagoBankruptcyLawOffice.com – an informative website written by a Chicago bankruptcy attorney – to learn aboutbankruptcy in Chicago.

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Lincoln’s Bankruptcy

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