Even a century ago, individuals with substantial debt were required to serve time in debtors' prisons -- specialized jails for the indebted. In many instances, they were compelled to perform manual labor until they were able to pay off their debts. If a debtor's family was unable to repay the debts, as is frequently the case when the family breadwinner is incarcerated, the debtor may never exit prison.
In many instances, even debtors' institutions were an improvement over earlier practices. Throughout history, it was not uncommon for debtors to be forced into indentured servitude, also known as temporary enslavement, until they could repay their debts. A man who owes a debt that he cannot readily repay, for instance, could be forced to serve as his creditor's slave until the debt is repaid. Due to the imbalance of power, some creditors would defraud debtors so that they could employ them as permanent servants.
Since that time, the world has evolved. In nations such as the United States, it is common to carry a certain level of debt: student loans, car payments, and mortgages are all accepted as part of daily life. Now that taking out a loan does not expose individuals to the risk of enslavement, they can safely acquire property on credit.
However, significant life changes can render previously manageable debts unmanageable. After an injury, severe illness, or other unforeseen event, it may be impossible to meet daily expenses without incurring additional debt. For individuals whose lives have been consumed by phone calls from creditors and mounting bills, bankruptcy may be the most effective method to alleviate the burden of debt.
" - https://www.affordablecebu.com/
