Bankruptcy Act of 1800
The Bankruptcy Act of 1800 was the United States' first bankruptcy law passed by the United States Congress. The act was passed in response to a decade of periodic financial crises and commercial failures. It was modeled after English practice. Only merchants, bankers, and brokers could petition a creditor. The bankrupt estate was placed under the control of an assignee chosen by the creditors. The law was meant as a temporary measure with a five-year sunset clause. Congress repealed the law in 1803.
