Before 1898, Congress exercised the power to establish “uniform laws” on the subject of bankruptcy only intermittently. The first national bankruptcy law was not enacted until 1800 and was repealed in 1803; the second was passed in 1841 and repealed two years later; a third was enacted in 1867 and repealed in 1878,1451.Therefore, during the first eighty-nine years under the Constitution, a national bankruptcy law was enacted in existence only sixteen years in total. Consequently, the most important question of interpretation that arose during that period concerned the effect of the clause on State law. Before 1898, Congress exercised the power to establish uniform laws on the subject of bankruptcy only intermittently.
The first national bankruptcy law was not enacted until 1800 and was repealed in 1803; the second was passed in 1841 and repealed two years later; a third was enacted in 1867 and repealed in 1878,1footnote National Bank of Hanover v. Thus, during the first eighty-nine years under the Constitution, a national legislation When it came to bankruptcy, there were only sixteen years in total. In effect to federal law policy, the Court has held that a state law regulating this distribution of the property of an insolvent was suspended by that law, 7FootnoteInternational Shoe Co. The judicial officer with decision-making power in federal bankruptcy cases is the United States bankruptcy judge, a judicial officer of the United States district court.
Develop all laws that are necessary and appropriate to carry out the execution of the above powers and all other powers conferred by this Constitution on the Government of the United States or any Department or Official thereof. In one of the circuit's first cases, Judge Livingston suggested that, since English laws on the subject of bankruptcy from the time of Henry VIII onward applied only to merchants, there could be “doubt” as to whether a congressional law subjecting every description of persons within the United States to such a law. States would agree with the spirit of the powers conferred on them in relation to this subject. The Supreme Court ruled early that, if there is no congressional action, states can enact insolvency laws, because it is not the mere existence of power but its exercise that is incompatible with the exercise of the same power by states.
A state, of course, has no power to enforce any laws governing bankruptcy that impairs the obligation of contracts. 1454 extends to persons or assets outside its jurisdiction, 1455 or that conflicts with domestic bankruptcy laws. This measure was considered constitutional, 1428, as were subsequent laws, which provided for the reorganization of companies that are insolvent or unable to pay their debts as they mature, 1429 and the composition and extent of debts in procedures for the relief of individual debtors of farmers. Because Congress cannot replace the power of a state to determine how a corporation will be formed, supervised and dissolved, a corporation that has been dissolved by a decree of a state court cannot file a request for reorganization under the Bankruptcy Act.