Bankruptcies are not a cure all. They are a way to force creditors to work with debtors to either get the debt to where it can be paid back, or git rid of debts the debtor will ever be able to pay. The idea is to prevent usury or debt servitude. It also has the effect of introducing a risk to a loan where the lender can lose their money, and has to consider if it is a good idea to write the loan. Student loans are risky, so the government guarantees them, but even so the default rate is high. Perhaps our focus should be on figuring out why so many loans default and working on bringing expenses and outcomes to an alignment where people don't default.

In America so many banks are hungry to loan money. You can build up your credit and save. I recovered from bankruptcy before the ink was dry. I was driving a new car and living in a new house in short order. It is now long gone from my credit file. Don't ever talk someone out of bankruptcy if they qualify for it.

If you own a home you can exclude it from the bankruptcy. You can also include it and continue to pay the payments and the contract must be honored!