Public Perceptions of Bankruptcies and Indebtedness in Slovenia during the Period of Austria-Hungary and the First Yugoslavia

Abstract

Bankruptcy is a legal procedure for terminating the business of an overindebted individual or company, which has historically been considered to be an extremely negative phenomenon due to its undesirable consequences. There is often a stigma attached to debtors, who have not seldom also been accused of fraud by hiding their assets. These views were widespread in Europe until the twentieth century, and Slovenia was no exception. The article presents the image of bankruptcies and debtors, as can be understood based on sources from the period of Austria-Hungary and the interwar Yugoslav monarchy. The most common approach to financial collapses was moral outrage, and the press often wrote about bankruptcies through the prism of political or national affiliation, defending members of the same political group and attacking opponents. The views of the bankrupt debtors and creditors themselves are also explored.