The economy of the world is being financed majorly with debt and this has helped improve the way of living for citizens but it is very difficult to see a country go bankrupt but individuals can go bankrupt but when it has do with financing personal life, projects and other activities with debt, a person has to be very careful.
There are actually good debts and there are bad debts. The good debt are debts used to finance profit or dividend oriented purposes such as investing in businesses, buying properties for real estate purposes, buying or starting businesses, and other purposes that will bring in revenue while bad debts are regarded as debts that are used to finance things that are above a person's financial strength which do not bring in any revenue.
As individuals, we are always advised against bad debt because they get majority of people into trouble with financial institution and since debt is using future money currently with the aim of paying additional fees in the future for being granted the resources now, so taking bad debt is not an option for a financially wise person but beyond bad debt which gets anyone into trouble, it is possible to get into trouble with a good debt if not handled properly.
A good debt is a debt used to generate revenue but when the expected return isn't feasible anymore, a good debt can turn sour. Actually, this often happens when people who want to harness higher leverage than they can afford while doing what might not be entirely profitable. At the point, people go bankrupt and good debt can become a bad one.