Why People Struggle Before Declare Bankruptcy?

Why People Struggle Before Declare Bankruptcy	bigturtle	NEW 12/2/2007 5:20:54 PM
Let'ssay US government takes a strong position to stop all foreclosureprocesses. They force creditors to accept lose for "the sake of people(citizens who vote)". What next? 1. Banks who hold mortgagecannot foreclose and receive no interest and principal payments.Depositors (many are citizens who vote) worry their money (more thantheir nation) thus --- bank run. 2. FNM and FRE cannot foreclosethus people dump their bonds. Now, pension funds and banks hold lots ofthem. Bank run. Furthermore, FNM or FRE can issue no more bonds thuscan buy no more mortgage. The result - bank run plus credit dry up. 3. Creditors now realize that if they lend money out, they won't be paid back. US bond market will be closed. Backto the question: why do people struggle rather than declare bankruptcyimmediately (as media suggest)? IMHO, after bankruptcy, people's livingstandard plunge immediately due to no more credits. People struggle sothey can maintain their living standard.