An overview of the process here in Norway can be found here[1]. Basically the rights to all your possessions go to the trustee or court in charge of the case, which will then try to liquidate assets and pay back the creditors.
However a big difference to a corporate bankruptcy is that if you're unable to provide for yourself, you can apply to the trustee/court to get some money for essentials from your previous assets. You can also claim that certain assets are "essential", so you can keep them. This could be clothes, furniture etc. You also get to keep tools, means of transportation etc that you require for your work or similar. Your home is also protected to some degree.
Once the case is settled you pretty much continue your life. You can't start a company for some time, but AFAIK nothing huge hanging over you.
Wikipedia has a page about it[0], but it doesn't explain in detail how it works in the U.S., it does say that it involves a process similar to corporate bankruptcy.
Yes. Slavery is illegal. The reason interest rates are sometimes so high is that lending money is a risk for the lender, not a life sentence for the borrower.
However a big difference to a corporate bankruptcy is that if you're unable to provide for yourself, you can apply to the trustee/court to get some money for essentials from your previous assets. You can also claim that certain assets are "essential", so you can keep them. This could be clothes, furniture etc. You also get to keep tools, means of transportation etc that you require for your work or similar. Your home is also protected to some degree.
Once the case is settled you pretty much continue your life. You can't start a company for some time, but AFAIK nothing huge hanging over you.
[1]: https://www.konkursradet.no/?cat=304773