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

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

It has done just that since 1800. This legislation, which outlines the various types of bankruptcy filings, has evolved over time. The most recent iteration is the Bankruptcy Reform Act of 1978, which introduced Chapter 11 filings in an effort to make the process easier for businesses and individuals.

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.

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 Judiciary Act of 1789 created the foundation of the federal justice system

Passed by the First Congress, the Judiciary Act of 1789 established the federal court system, the Office of the Attorney General, and the US Marshals Service—the first law concerning national law enforcement and legal administration.

Central banking in the US has had a fraught political history

That history includes its doomed early efforts in the First and Second National Banks, as well as its failure to address the worst financial period in US history, the Great Depression.

Hamilton founded what many regard as the first commercial bank in the United States

In 1784, Alexander Hamilton helped found the Bank of New York, which initially operated without a charter, financed early federal operations, provided what is considered the US government's first loan, and became the first stock traded on the New York Stock Exchange.

The US has carried debt since 1791

After the Revolutionary War, the US owed $75M to nations like France. Debt builds when spending exceeds revenue, funding programs, wars, and economic recovery efforts. Most debt is domestic, like Social Security bonds, with foreign nations also holding a share.

The Articles of Confederation were the first governing documents of the United States

Drafted in 1777 and ratified in 1781, the articles created a weak national government without the ability to tax or regulate commerce. This led to problems for the new nation, necessitating the Constitutional Convention in 1787.

The concept of CDs dates back to the 1600s in Europe

Banks in the US started issuing CDs in the early 1800s as the banking system began to take shape following the Revolutionary War. The federal government did not formally insure CDs until the FDIC was formed in 1933.

The bond market dates back to the 1100s in Venice

In the early 1800s, bonds were used to fund US railroads and canals in Great Britain. “Liberty Bonds” were sold during both World Wars in the 20th century. Learning about the early and modern history of bonds can offer a glimpse into how the modern bond market came to be.

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

Explore the world's oldest constitutions

The 1789 US Constitution remains the oldest active written national constitution. Older systems exist—such as San Marino’s statutes or the Magna Carta—but they are not single, codified constitutions. See how other countries compare in this visualization.

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.

A history of every US government shutdown

There have been 21 shutdowns of the federal government in US history, a result of Congress's failure to pass appropriations bills in time. While the cause of most of the shutdowns stems from issues around the national debt and budget, a few originated in fights over unrelated policies. Dive into the history of each one with this comprehensive list.

The debate over federalism helped produce the novel character of the United States

During ratification, Federalists argued that a strong national government was essential for national survival. Anti-Federalists warned that it could overwhelm states and threaten individual liberty—forcing compromises that shaped early American federalism and led to the adoption of the Bill of Rights.

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.

Trace how the Bill of Rights, inspired by centuries of political theory, took shape between 1774 and 1789.

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.

During the Civil War, the US government printed paper money for the first time

Those original paper bills were called “greenbacks” or “demand notes.” Since then, paper money has evolved with different designs, names, and values. Today, it is solely issued by the Bureau of Engraving & Printing.

The first recorded worker strike in the United States happened in 1768

That year, journeymen tailors went on strike to protest a wage reduction. By 1794, cobblers in Philadelphia formed the nation’s first trade union, the Federal Society of Journeymen Cordwainers. But that’s just the beginning of labor union history in the US.

A bankrupt flour merchant in debtor’s prison helped inspire the Erie Canal

In 1807, Jesse Hawley, jailed for debt after struggling with high transport costs, published essays under the pen name “Hercules.” His writings laid out the canal’s route and benefits, galvanizing support for the project.

Bill of Rights Day is commemorated annually in the United States on Dec. 15

The date marks the 1791 ratification of the first 10 amendments. President Franklin D. Roosevelt officially established Bill of Rights Day in 1941, on the document's 150th anniversary. Hear the speech he gave on that day.

The first test of America's war powers came just a decade after the Constitution was ratified

During the undeclared Quasi-War with France in 1800, the Supreme Court ruled in Bas v. Tingy that Congress had authorized a valid "imperfect war" through statutes alone, without a formal declaration, establishing that there is a legal spectrum between peace and declared war.

The National Housing Act established the Federal Housing Administration

During the Great Depression, 1,000 homes were foreclosed on per day, and half of the mortgages across the country defaulted. To address this crisis, President Franklin D. Roosevelt signed the National Housing Act. It established the Federal Housing Administration, which is still around today and helps protect lenders and buyers.

US consumers collectively owe more than $1T to credit card companies—almost as much as they owe in auto loans.

Explore the history and origins of the power of the pardon

The concept of clemency dates back to at least ancient Greece and was later embraced by English monarchs. During the Constitutional Convention, the founders debated whether presidents should have such power—ultimately adopting Alexander Hamilton's expansive view that presidential pardons serve as a check on the justice system.

The term ‘Black Friday’ originally referred to a 1869 US gold market crash

After financiers Jay Gould and James Fisk attempted to corner the US gold market, the market crashed on September 24, 1869, bankrupting thousands of investors and sending stock prices plummeting by 18%. That day became known as “Black Friday” long before the unofficial retail holiday emerged.

In 2025, the 'two strikes and you're out' rule took effect to protect consumers from repeated attempts to withdraw money

After years of being delayed by litigation, a 2024 US Supreme Court ruling upheld a law that prevents lenders from attempting to take payments from accounts with insufficient funds more than twice without reauthorization. This tactic is commonly used by payday loan companies, which technically require repayment on the day borrowers receive their paychecks.

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.

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 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.

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

Meet the 56 signers of the Declaration of Independence—most of whom didn't put pen to paper until August 2, 1776—and see their original signatures.

Hear about the 250-year history of the United States Postal Service, complete with some of its strangest deliveries, important innovations, and the figures that made it an American institution.

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.

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

After the Boston Tea Party, colonists switched to coffee, which became the main morning drink for revolutionaries.

The United States has had a tumultuous relationship with Cuba since its 1959 revolution, highlighted by a nuclear crisis and a decades-long trade embargo.

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

Learn more about the history of fireworks, which dates back to an accidental invention during an alchemist's quest for information about immortality.

View the ten deadliest tornadoes in US history.

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.

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.

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

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.

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.

In 1939, baseball star Lou Gehrig delivered his inspirational 'Luckiest Man' speech after retiring due to the health condition that now bears his name.

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

The Beatles' US label rejected the band's first two singles, 'Please Please Me' and 'From Me to You,' with one executive calling the band 'dead in the water.'