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Upon the ratification of the United States Constitution in 1789, Congress was given the power under to legislate for "uniform laws on the subject of Bankruptcies" throughout the United States. Congress' first law on the subject was the Bankruptcy Act of 1800, which was limited to traders and provided only for involuntary proceedings. This was repealed in 1803. Diplomatist Edmund Roberts, President Andrew Jackson's envoy to the Far East, incorporated American concepts of bankruptcy protection into Article VI of the Roberts Treaty with Siam of 1833.
Voluntary bankruptcy in the United States was first allowed by the Acts of 1841, and 1867. These early acts and the Bankruptcy Act of 1898, known as the Nelson Act, established the modern concepts of debtor-creditor relations.
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