yes, its commercial law generally in use in the west...if you are the borrower, and you go under because of your own stupidity, then the creditor can present his case that the borrower has to pay back a percentage, rather than to go bankrupt and become free and clear.
Also, it is noted in your credit file if you went bankrupt in a financial crisis, when everybody else did, and thus not your fault, or if you squandered your resourses ect. and went backrupt in a time of plenty....it all gets worked out and it certainly has ramifications.
You must remember that in a mature economy going bankrupt also means the loss of livlihood for your family and children, loss of your home, ,,,,all sorts of things.
The lending of money is a serious endevour, and the lenders have to accept their responsibility as well,,,philosophically speaking....but it doesn't appear that they are doing so.
This economic cycle, lasting over the past 7 to 10 years, had some unique features....