Congress has the power to enact laws related to bankruptcy, thanks to the US Constitution

The history of bankruptcy in the US dates back to the signing of the Constitution

In 1787, this founding document gave Congress the right to establish nationwide bankruptcy laws. Legislators took advantage of that power in 1800 when they passed the Bankruptcy Act of 1800, the first comprehensive bankruptcy law at the federal level.

Bankruptcy is a legal way to manage overwhelming debt, whether for individuals, corporations, or even local governments

Chapter 7 is for liquidating personal assets to clear debts, Chapter 13 allows a repayment plan for individuals, and Chapter 11 lets businesses reorganize to stay afloat.

The most common types of bankruptcy filings are Chapter 7, Chapter 11, and Chapter 13

However, there are actually six types in practice today. These less-common options can be lifelines for foreign businesses operating in the US, local governments, and farms and fisheries.

Every year, nearly 500,000 bankruptcies are filed in the US

From personal hardships to major corporate collapses like Enron and Bed Bath & Beyond, filing for bankruptcy isn't a quick fix or a “get-out-of-jail-free” card—it’s a complex, structured process offering debt relief or repayment options.

What is Chapter 11 bankruptcy?

While there are multiple types of bankruptcies, Chapter 11 is probably the one you've heard about the most. Technically speaking, Chapter 11 bankruptcy involves a reorganization of a business's assets and debts under court supervision. Companies such as Red Lobster, WeWork, and Party City have all filed for Chapter 11 bankruptcy in recent years. Learn more about it here.

Congress has handled past crises through emergency lawmaking and institutional expansion

In a 2020 podcast from the National Constitution Center, historians and political scientists examine how Congress navigated past national crises—particularly the Civil War—and what those moments reveal about governing today.

Congress can remove federal officials through impeachment

The United States House of Representatives has the sole power to impeach federal officials. The United States Senate then conducts impeachment trials and decides whether to convict and remove them from office.

The Constitution grants Congress more powers than the president

Article I outlines detailed congressional powers—taxation, spending, war declarations, and lawmaking—while Article II gives the president limited, broadly defined authority. This design reflects the framers' intention to prevent executive overreach.

The debt ceiling is a legal cap on how much money the US government can borrow

Set by Congress, the debt ceiling limits total federal borrowing. This guide explains why the cap was created, how it has evolved, and why raising or suspending it has become a recurring political flash point.

There’s an artificial intelligence model trained on bankruptcy law

Although it's designed for lawyers, the tool is able to help everyday browsers synthesize important cases and point users to relevant documents about them. One sample using it asks Chatlaw to explain the significance of a recent case and then to define relevant terminology.

Learn how the US tax code works and why it's important

First published in 1926, the US Code is the official codification of federal statutes in the US. Title 26 of the US Code, for instance, lists all of the federal tax laws of the United States. A new edition is published every six years.

The US framework of government has influenced the constitutions of many other countries

In 1787, the US Constitution introduced a system built on the separation of powers and individual liberties, including freedom of speech and religion. Though widely influential, its rigidity has made it less of a modern model as countries adopt more adaptable constitutional frameworks.

The Senate's filibuster—a procedure that allows for unlimited debate—is not in the Constitution

In the United States Senate, the filibuster enables senators to delay or block legislation. Ending debate became possible in 1917 with a cloture rule requiring a two-thirds vote. In 1975, that was changed to 60 votes in most cases.

The commerce clause gives the federal government authority to regulate interstate economic activity

This short constitutional provision has allowed Congress to regulate everything from wheat production to racial segregation, greatly expanding federal power by linking national authority to interstate economic activity.

The Budget and Accounting Act of 1921 created the modern federal budget

Before 1921, federal funding was fragmented and ad hoc. This article traces how inefficiency and postwar pressures led Congress to pass the Budget and Accounting Act, creating a standardized, centralized federal budgeting process.

Congress plays baseball together in a bipartisan charity game dating back to 1909

First organized in 1909 by Rep. John Tener, a former pro baseball player, the Congressional Baseball Game pits Democrats against Republicans to raise money for charity—and offers a rare behind-the-scenes look at lawmakers mixing rivalry with camaraderie.

The Great Compromise created Congress's two-chamber structure during the Constitutional Convention

The Great Compromise of 1787 established a bicameral Congress, balancing population-based representation in the House with equal representation for each state in the Senate—a system designed to reconcile the competing interests of large and small states.

Explore the nearly 1,000 laws, regulations, and provisions the court has held unconstitutional since Marbury v. Madison

Over more than two centuries, the Supreme Court has struck down nearly 1,000 federal, state, and local measures—exercising its authority to invalidate laws that conflict with the Constitution and shaping civil rights, the separation of powers, and the scope of government authority.

Members of the United States Congress earn $174,000 annually

Members of the United States Congress have received the same pay since 2009. Leadership roles are more lucrative, and lawmakers become eligible for a federal pension after five years, with benefits tied to the length of service and salary.

Despite being favored by 87% of Americans, Congress does not have term limits.

The Federal Reserve is the central bank of the US

No institution wields more power in US finance than the Federal Reserve—but opinion polls indicate that most Americans don't know what it does. Curious about the country's central bank? 1440's got your breakdown of how the Federal Reserve works.

The US Constitution is widely regarded as the longest-standing written national constitution still in force—see how it has influenced rights worldwide.

In 2019, Congress passed the Secure Act to reform key aspects of the US tax code

Key Secure Act provisions included raising the age at which mandatory distributions take effect (to increase saving), allowing larger catch-up contributions for older individuals, and allowing employers to directly match contributions in a Roth 401(k).

Watch 'I'm Just a Bill' explain how a law gets made

First aired in 1976, "I'm Just a Bill" became a defining civics lesson for generations, using animation and humor to trace the legislative process and cement itself as a lasting piece of US political culture.

Parliament is the supreme legal authority under the UK's constitutional system

The principle of "parliamentary sovereignty" holds that the UK Parliament can make or repeal any law, and that courts cannot invalidate its legislation. Judicial bodies can reshape governance, but parliamentary laws remain legally supreme.

Anti-money laundering laws forcing banks to report data have become important foreign policy tools

Since the Bank Secrecy Act of 1970, which required banks to report transactions exceeding $10K and keep records on customers, anti-money laundering laws have become an important proxy for American foreign policy initiatives. Increased regulation via financial institutions helps curb drug and human trafficking, as well as destabilize the financial infrastructure for terrorist organizations.

The Clean Water Act became the national standard for protecting American waters

Enacted in 1972, the Clean Water Act grants the Environmental Protection Agency the authority to regulate pollutant discharges, establish water quality standards, and oversee water pollution controls. Its scope has narrowed due to recent Supreme Court rulings.

The United States is one of only around two dozen countries with a fully federal system of government, in which power is divided between national and state governments.

Roughly 43 million US borrowers owe roughly $1.7T in student debt, the second-largest source of consumer debt behind mortgages.

The idea for the Federal Reserve was conceived in secret in 1910—with bankers donning duck hunt gear for disguise while traveling to a remote country club on Georgia's Jekyll Island

The US dollar is the most widely circulated currency in the world, and is involved in nearly 90% of global transactions

Jimmy Carter signed a 1978 bill that legalized home brewing, a move credited with kick-starting the craft beer industry.

The rivalry between Alexander Hamilton and Thomas Jefferson centered on federalism—the question of how much power the federal government should hold relative to the states.

While the first exchange-traded fund (a 'basket' of different assets that can be bought and sold on a stock exchange) in the US only launched in 1993, the global ETF market has grown to more than $10T in the short time since.

Learn how to read a prospectus, the juicy document that any company must file with the SEC before going public.

See this overview of the firework rules across all 50 states, ranging from a complete ban on non-professional fireworks in Massachusetts to states with more lax rules like Indiana.

The first steps to rebuilding your credit score include getting to know exactly what's on your credit report and figuring out how far you are from the '700 club,' or 'good score' range.

Long before Major League Baseball began allowing instant replay for balls and strikes, an umpire reluctantly used the technology to determine whether a hit was a home run, a move that inadvertently ushered in a new era for the sport.

A century of Billboard issues documenting the evolution of popular music.

The American Society of Civil Engineers' infrastructure report card gave the US a C in 2025, its highest grade since the project launched in 1998.

As of 2025, the most cited papers in science include a review of graphene, methods to improve image recognition, streamlining electron density calculations, and optimizing protein studies.

Sears sold DIY house kits starting at $600 in its famous catalog from 1908 through the 1940s, resulting in roughly 10,000 'Sears and Roebuck houses' being built.

Sony set the standard for cylinder-shaped batteries when it repurposed manufacturing equipment used to make rolls of magnetic recording tape.

How Amazon operates a 'flywheel' business model, a self-reinforcing cycle that drives continuous growth

The Brothers Grimm were lawyers before they were storytellers, and became interested in fairy tales as they began investigating how rules and customs had been passed down through cultures.

The word 'jazz' evolved from 'jasm,' 19th-century American slang for 'energy'

'Grand Canyon of the Yellowstone,' a work by American painter Thomas Moran, inspired Congress to establish Yellowstone National Park.

Chaos theory—informally known as the butterfly effect—is the reason why weather forecasts are presented with probabilities rather than certainties.

Planarian flatworms are small, aquatic worms with exceptional regenerative capabilities. When cut, the worms can regenerate multiple bodies in a matter of weeks.