Because of the recession many consumers had to file for bankruptcy for two main reasons one is the demand from card companies and the next is a loss of income faced by some people.
As this process is very hard to get over by anyone it can lead to having a new start as long as the old records have been removed by a court order or restructuring.
Most people want a fresh start to rebuild there debt score but most people are afraid of credit card debts and even not wanting to use them again.
This is old by some main sources that why some people file for bankruptcy is that they have high balances and an unstable level of unsecured debts.
But before all of these issues the card companies usually increased the consumers spending limits and therefore the consumer could do so without any worries at all.
And because of the current recession the idea of people living above their means had to stop as the various banks and card companies had to carry down the limits and then raise the charges and this was when many consumers faced bankruptcy because of being unable to repay debts owed to card companies.
But with the right attitude towards the situation they maybe a great way to get help in some emergent cases.
If you do not use a debit card correctly then you will end up in bankruptcy but they are very useful when building a debt score.