What makes me angry is watching people run up their credit cards and home equity debt, then filing for bankruptcy and getting out of paying any of it back. This leaves responsible people pretty much holding the bag. We pay for it with higher interest rates and tighter lending practices.Pretty much a myth. About ten years ago the lending industry was given the opportunity to rewrite the personal bankruptcy code to the point that it no longer serves the function of providing people who need it a fresh start. This is not good for any of us except lenders because it means lots of people using most of their money to pay back debt instead of participating in the economy. The number one reason people declare bankruptcy is unexpected medical expenses coupled with not being able to work for awhile because of the sickness or injury.
I was using a very specific example with names withheld.