Sadly it's quite necessary based on our economic system that debt exists. The bankruptcy system currently doesn't favor those mired in personal debt but it does favor wealthy people who protect their assets when filing bankruptcy.
Many people aren't aware that bankruptcy is the busiest federal court in America. In theory, bankruptcy in America exists to cancel or restructure debts for people and companies that have way too manya safety valve designed to provide a mechanism for restarting lives and businesses when things go wrong financially.
But now bankruptcy thanks to some legislative magic has been designed as an escape hatch for powerful individuals, corporations, and governments contributing in unseen and poorly understood ways to race, gender, and class inequality in America.
When cities go bankrupt as an example, police unions enjoy added leverage while police brutality victims are denied a seat at the negotiating table; the system is more is more forgiving of civil rights abuses than the parking tickets disproportionately distributed to African-American neighborhoods.