Bankruptcy laws are complicated and the interpretation and intervention of the law varies from case to case. In case the loan has co-signatories where one decides to file bankruptcy might affect the others.
The financial crisis of the past few years have left many Americans dead broke. The situation has been compounded by the fact the Americans by nature love to spend be it on eating out or shopping for new gadgets. With freeze or pay hikes and even job cuts many Americans have fallen into the horrible debt trap.