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For some situations, it can be. My son came home from an aircraft carrier tour to find out that his wife had left him with $20,000 worth of debt, including an apartment eviction, a repossessed car and cleaned out their apartment (left no forwarding address). His only choice was to declare bankruptcy and start all over again. He was able to get out from under all the bills she had run up, and get the eviction and car repossession taken off his record. From then on, he was able to gradually build up a new credit rating, and today (eight years later) it's all ancient history.
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