Soon after the birth of their second child, misfortune fell on the lives of Kurt and Leah Lyons. Kurt got laid off, the landlord raised their rent, they received notice that their car was about to be repossessed, and dunning letters arrived daily from credit card companies.
Reluctantly, the couple filed for personal bankruptcy. Their disappointed parents told them that the bankruptcy would remain on their credit rating for the rest of their lives and that they would never again be able to establish a line of credit or obtain a mortgage to buy a house. Were Kurt and Leah's parents correct? Explain.