BANKRUPTC

BANKRUPTCY. The state or condition of a bankrupt.
     2. Bankrupt laws are an encroachment upon the common law. The first in 
England was the stat. 34 and 35 H. VIII., c. 4, although the word bankrupt 
appears only in the title, not in the body of the act. The stat. 13 Eliz. c. 
7, is the first that defines the term bankrupt, and discriminates bankruptcy 
from mere insolvency. Out of a great number of bankrupt laws passed from 
time to time, the most considerable are the statutes 13 Eliz. c. 7; 1 James 
I., c. 19 21 James I., c. 19 5 Geo. II., c. 30. A careful consideration of 
these statutes is sufficient to give am adequate idea of the system of 
bankruptcy in England. See Burgess on Insolvency, 202-230. 
     3. The Constitution of the United States, art. 1, s. 8, authorizes 
congress "to establish an uniform rule of naturalization, and uniform laws 
on the subject of bankruptcies throughout the United States." With the 
exception of a short interval during which bankrupt laws existed in this 
country, this power lay dormant till the passage of the act of 1841, since 
repealed. 
     4. Any one of the states may pass a bankrupt law, but no state bankrupt 
or insolvent law can be permitted to impair the obligation of contracts; nor 
can the several states pass laws conflicting with an act of congress on this 
subject 4 Wheat. and the bankrupt laws of a state cannot affect the rights 
of citizens of another state. 12 Wheat. It. 213. Vide 3 Story on the Const. 
Sec. 1100 to 1110 2 Kent, Com. 321 Serg. on Const. Law, 322 Rawle on the 
Const. c. 9 6 Pet. R. 348 Bouv. Inst. Index, h. t. Vide Bankrupt.