Comment by D13Fd

>Bankruptcy is the only mechanism which allows debts to be wiped clean without simultaneously adding more debts.

This is untrue. There is also repayment, which is the way the system is designed to work. There is also voluntary/negotiated forgiveness by lenders.

More than that, how is bankruptcy a bad thing in this context? Isn't bankruptcy exactly what should happen when repayment becomes impossible?

Our system of bankruptcy organizes the process of default, and was actually the solution to the older problem of things like debtor's prisons.