fawziya:
thats a good question. there are plenty who think that you can go around and rack up a huge debt since the economy will collapse and the dollar will be worthless. leaving AMEX, discover, or MC/visa or some other big banking/credit card corporation with no chairs when the music stops playing sounds like a nice plan.
its my understanding that there are recent new bankruptcy laws that make is very difficult to personally declare bankruptcy. i think any credit card debt cannot be wiped clean. i think it must be paid.
how the US/paulson will iron out the foreign debt to other countries is anyones guess at this point. that will probably be handled after the reintroduction of a reformatted (world?) currency. whatever is done, remember, cannot be challenged due to the passage of the bailout bill terms, so it wont be up for discussion anyway:
''Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.''
source:
http://www.huffingtonpost.com/2008/0..._n_128294.html