Bankruptcy Act of 1898 Law and Legal Definition

The Bankruptcy Act of 1898, governed bankruptcy cases filed before October 1, 1979. This was the first United States Act of Congress involving Bankruptcy that gave companies an option of being protected from creditors. The Act is also referred to as Nelson Act, after Senator Nelson who played an important role in its composition. It was significantly amended by the 1938 Chandler Act. It was superseded by the Bankruptcy Act of 1978.