[painfulpox]

You should look up bankruptcy laws. They can probably take your house, but oftentimes debtors reaffirm their mortgage to avoid that scenario. You can keep one car used as transportation to and from work, and like 90% of your personal property unless you were already loaded. It really only forces you to sell off assets. You have to meet specific discretionary income to debt forumulae to apply, which locks a lot of people out of bankruptcy as an option.

Your second point is fair, though. That's why student debt shouldn't be a thing.