Bankruptcy is one of the specific powers granted to Congress in Article I of the Constitution. Clearly, the concept of bankruptcy has been been around for at least 250 years, and the framers thought it important enough to include in the Constitution. Thomas Jefferson once stated that, "Banking establishments are more dangerous than standing armies."

Why was bankruptcy such an important issue? Did the framers think that this was essential for the national economy? Was it a way of preventing abusive banking practices? What does it essentially mean to declare bankruptcy? What are you afterwards compared to before declaring bankrup