The basis of the federal bankruptcy statutes used until the Bankruptcy Reform Act of 1978; provided primarily for liquidation of companies; reorganization could be effected indirectly under the 1898 Act through equity receiverships (these were used to keep creditors from seizing the assets of distressed companies).
The Bankruptcy Act of 1898 ("Nelson Act", July 1, 1898, ch. 541, 30 Stat. 544) was the first United States Act of Congress involving bankruptcy to give companies an option of being protected from creditors. Previous attempts at federal bankruptcy laws had lasted, at most, a few years.
.svg "Bankruptcy Act of 1898 1") | |
| Other short titles |
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|---|---|
| Long title | An Act to establish a uniform system of bankruptcy throughout the United States. |
| Enacted by | the 55th United States Congress |
| Effective | July 1, 1898 |
| Citations | |
| Public law | Pub.L. 55–541 |
| Statutes at Large | 30 Stat. 544 |
| Legislative history | |
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Its popular name is a homage to the role of Senator Knute Nelson in its composition.
It was significantly amended by the Bankruptcy Act of 1938 and was superseded by the Bankruptcy Act of 1978.
