Legal Definitions - Bankruptcy Act

The Bankruptcy Act refers specifically to the federal law enacted in 1898 that established the rules and procedures for bankruptcy cases in the United States. This particular statute governed all bankruptcy filings made before October 1, 1979. After that date, a new set of laws, primarily the Bankruptcy Reform Act of 1978, superseded it. Therefore, any legal matter concerning a bankruptcy case initiated prior to October 1, 1979, would be analyzed and decided under the provisions of the 1898 Act.

• Example 1: Historical Academic Research
  A legal historian is writing a book about the evolution of debtor protections in the United States during the mid-20th century. To understand the legal framework for businesses that failed during the 1950s, the historian would extensively study the provisions of the 1898 Bankruptcy Act.

  This illustrates the term because the historian is examining bankruptcy cases filed in the 1950s, which falls squarely within the period when the 1898 Act was the governing law for all bankruptcy proceedings.

• Example 2: Resolving an Ancient Estate Claim
  In 2023, while settling the estate of a distant relative who passed away at a very old age, a family discovers an unresolved claim related to a personal bankruptcy the relative filed in 1977. To determine the validity and implications of this old claim, the estate's attorney would need to consult the 1899 Bankruptcy Act.

  Here, the 1898 Bankruptcy Act is relevant because the original bankruptcy filing occurred in 1977, which is before the October 1, 1979, cutoff date. Therefore, the legal rights and obligations stemming from that specific bankruptcy are governed by the provisions of the older Act.

• Example 3: Consulting on an Old Business Dissolution
  A retired entrepreneur is contacted by a former business partner regarding a dispute over assets from a company that declared bankruptcy in 1970. The entrepreneur seeks legal advice on whether any further obligations exist. The attorney would need to review the details of the 1970 bankruptcy under the framework of the 1898 Bankruptcy Act.

  This example demonstrates the term's application because the business's bankruptcy occurred in 1970. Any legal questions about the discharge of debts, the distribution of assets, or the finality of that bankruptcy proceeding would be answered by referring to the specific rules and interpretations of the 1898 Bankruptcy Act.