Ancient Near East – The History of Bankruptcy
Financial difficulties can make us feel alone, ashamed, or isolated. No one wants bankruptcy, and we often don’t know how to reach out for help. These situations can be scary, but you don’t have to go through them alone. You are not the first or last person to think about bankruptcy and debt relief. As a former history geek, I find that history can comfort me when facing the unknown. It’s comforting to know that others have been in a similar position and survived. This blog, the first of a series, will explain the roots of bankruptcy, and how it has evolved into its current state. You can take comfort in knowing that people have faced similar situations for millennia. As we trace the history of bankruptcy and debt relief, it becomes clear that this practice is much older than you may think. Our journey through bankruptcy history takes us back to more than 4,000-years ago, when we visited a city state nestled between Euphrates River and Tigris River. Lagash is located in the Sumer region of today’s Iraq, around 2400 BCE. Enmetena the ruler of Lagash has just passed the oldest known debt relief. Enmetena, whose name is engraved on a tablet beneath the foundation of a Temple, “instituted freedom in Lagash.” He returned the child to the mother and the mother to the child. He cancelled interest.” This tablet is the oldest known record of government debt relief. Following this enactment, many nearby civilizations also began developing the systems for debt relief.
Sometime around 2375 BCE, Urukagina, a successor of Enmetena, rose to power and built upon Enmetena’s debt relief. Urukagina, in addition to removing corrupt officials and supervisors from power, abolished the practice of debt slavery
, and granted amnesty for all citizens of Lagash including prisoners. He also banned usury
, and the seizure of property for debt repayment. These laws were written on cones and tablet, and are the first documented instances of established citizens’ rights. Following this codification, other nearby civilisations such as Sumeria and Babylon followed suit and created similar forms of debt relief for citizens. In the Torah, debt forgiveness is mentioned. In certain cases, the debts are to be forgiven during the last year of a seven-year cycle. Hammurabi’s eye for an eye code stated that debtors did not have to pay grain in the case of natural disasters and crop failures. The debt was wiped out, and interest was not owed. It seems that debt relief is something that many people needed!
But, why should you be concerned about what people did more than four thousand year ago? Your financial problems are right now! Call now for a free strategy session with a MN bankruptcy lawyer at LIFEBACK LAW. Come talk to Minnesota’s most friendly bankruptcy attorneys about your modern options for debt relief. Visit [working as a slave to pay off your debt]www.lifebacklaw.com[interest rates on debt] and schedule a consultation today.
