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NORCROSS, GA, May 08, 2013 /24-7PressRelease/ -- Knoxville bankruptcy lawyers Clark & Wilson note that Daniel Webster, famous Massachusetts senator and U.S. secretary of state, who worked to form bankruptcy law in the 19th century, found himself overwhelmed by debt in later years.
The Early Days of Bankruptcy Legislation
Knoxville bankruptcy experts explain that in colonial times, if a man defaulted on a loan, he was placed in debtor's prison until he paid his creditors what he owed. A bankruptcy bill was passed by Congress in 1798. It required all states to recognize bankruptcy when a debtor was unable or unwilling to pay debts as they come due.
As a U.S. senator, Daniel Webster campaigned actively on behalf of debtors. He was instrumental in getting the Bankruptcy Act of 1841 passed. This law finally enabled debtors to benefit from bankruptcy. Three years later, under intense political pressure, however, the law was repealed.
Webster's Financial Problems
Webster had his own problems with debt. During the Panic of 1837, he engaged in excessive speculation in western lands, and relied on loans from friends to prevent him from being ruined financially. He resigned from his position as secretary of state in 1843 in part due to financial difficulties. He was known as "Black Dan" because of his business dealings, his political escapades, and his chronic nonpayment of debts. He had a taste for luxury, and lived beyond his means.
His financial problems continued to plague him. In 1844, when he was faced with having to resign from the U.S. Senate under financial pressure, Webster allowed his friends to raise money to provide him with a supplementary income.
Today, Knoxville bankruptcy law firm Clark & Washington point out that people's financial problems, regardless of the cause, no longer have to shadow them for years, as Daniel Webster's did. Their Knoxville bankruptcy attorneys can help with Chapter 7 and Chapter 13 bankruptcies.
For more information about Knoxville bankruptcy lawyers and their services, visit http://www.knoxvillebankruptcyattorney.com.
About Clark & Washington:
Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal chapter seven and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.
For more information, visit http://www.knoxvillebankruptcyattorney.com.
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