Virtually every country with a modern legal system features some form of debt relief for individuals.
The DICE report 2006 of Munich's ifo Economic Research compared international personal bankruptcy in selected OECD-countries.
Common items for exemption include clothing, furniture, appliances, motor vehicles, medical and dental aids, a home, family heirlooms, and some insurance.
Personal Bankruptcy will eliminate most, if not all, of an individual’s debt, but it also impacts their future ability to obtain credit.
If the debtor has no proven financial ability to pay the creditors, he may be granted an immediate discharge.
[7] Since 1996, Israeli personal bankruptcy law has shifted to a relatively debtor-friendly regime, not unlike the American model.