Credit rating agencies are warning about the debts of Portugal and Spain and others may follow.
VOA: special.2010.12.24
Edward Yingling says it restricts the ability to price credit for risk -- in other words, to charge more for those more likely not to repay their debts.
VOA: special.2009.05.22
If all goes as planned, the debtor will be discharged of unsecured debts, generally credit card debts.