I. History of Creditor Harassment
Creditor harassment is not only a modern day event. For example, in the middle ages European men and women owing debts ended up in "debtor's prisons," the ultimate form of creditor harassment. These prisons were single cells housing both sexes. Many found themselves victims to the harsh prison conditions. Starvation was common. If the breadwinner was imprisoned, families and businesses suffered. It made little sense to lock debtors up - how could they pay the creditors if they were unable to work? Some debtors sold themselves into "debt bondage" - a slavery of sorts to pay off the debt, in a desperate attempt to get out of prison. (www.Wikpedia.org)
This phenomenon of debtor's prison was present in pre-revolutionary America. However, a backlash was in the works. A group called the "Society for Relief of Distressed Debtors" fostered the belief that forgiving debt helped capitalism and increased prosperity by encouraging risk taking. Finally, Congress addressed the debt problem head-on. In 1841 the Federal Bankruptcy Law was enacted and prisons were outlawed. Bankrupt persons were now seen as victims of economic cycles, not persons subject to divine retribution. (The New Yorker, Jill Lepore, "I.O.U.", April 13, 2009)
II. Famous Figures Who Filed Bankruptcy
If you think you are alone in filing for bankruptcy, think again. Not only are the destitute affected by economic downturns. Many famous and accomplished people claimed bankruptcy protection (this is only a few):
Musicians:
Willie Nelson
Elton John
MC Hammer
Actors:
Kim Basinger
Burt Reynolds
Athletes:
Mike Tyson
Leon Spinks
Businessmen:
Donald Trump
Walt Disney
Authors:
Mark Twain
Oscar Wilde
