As counterexample to the way Americans handle debt the way some european countries handle debt is really fucked. Spain is going through a deep recession (25% un

As counterexample to the way Americans handle debt the way some european countries handle debt is really fucked. Spain is going through a deep recession (25% unemployment, even now) because you simply cannot declare bankruptcy. According to a friend a lot of local and international banks were quite happy to make Spanish loans since no matter what happens the debtor has to pay. In the US, a bad debt leaves your credit report after 7 years, and personal bankruptcy after 10 years. Since there is no financial reset button in Spain all the bad shit that happened in 2009 is still making waves 5 years later. The worst affected, small business owners, committed suicide or self-immolation realizing they had no escape and no future.