National Bankruptcy Act of 1898

The National Bankruptcy Act of 1898 was a U.S. law that established a uniform system for handling bankruptcy across the country. Before this act, bankruptcy laws varied by state, making the process confusing and inconsistent. The act allowed individuals and businesses unable to repay their debts to seek relief through bankruptcy courts. It aimed to provide a fair process for debtors to reorganize or eliminate their debts while ensuring creditors had a chance to recover some funds. This act laid the foundation for modern bankruptcy law in the United States.