What is the downside to a bankruptcy?

Bankruptcy is not a walk in the park, free and clear. The downside is that bankruptcy has a negative credit rating – "bad credit" – for a period of up to ten years. For some, the scarlet letter of bad credit may not be much of a downside, particularly when it comes with relief from harassing phone calls, overdue bills, and crushing debt.

On the other hand, a life without easy credit for some is a heavy burden because it means a cash-and-carry style of life.

Except among the most conservative people, the stigma of bankruptcy has all but vanished in American life. People now accept that bad luck can deal a bad set of financial cards to anyone. Moreover, to a certain extent, life in America has become a walk on a high wire where bankruptcy is a safety net into which many will fall at one time or another. Many people who have gone through bankruptcy emerge with fresh perspectives about extravagant consumer spending that contribute to their financial ruination.