A friend of mine recently declared herself bankrupt as she had no capacity to fulfil her debt obligations. She's now back at square one but her other option didn't really exist because due to illness and being unable to meet her obligations, her loan skyrocketed. It was tough for her, but she only lost what she didn't really have. She genuinely wanted to meet her obligations but could not.
If Greece declares herself bankrupt and defaults entirely, she will still have Greece. Maybe they can start again from square one. But it is not that simple is it, other countries are owed lots of money.
