When people run out of money

What happens to people who have a job but get deep into credit card debt, have to mortgage their home, and basically have no money left?

Their creditors take them to court, their credit gets screwed up for ages, they may declare bankruptcy, their home would most likely be foreclosed upon by the bank, their car repossessed. A bunch of things. It really depends on the situation. Also, if they have a job and the court rules against them, chances are their wages will be garnished to help pay off the debts.