The family isn't literally in bankruptcy, and you have your history wrong. Bankruptcy reform is largely a consequence of mid 19th century classical liberal intellectual thought which shifted the onus of counterparty risk to the lender. One of the biggest proponents was Bentham, who could hardly be considered a socialist. Benjamin Tucker (whom it appears libertarians and socialists fight over intellectual ownership) was also a major proponent, but it's worth mentioning he was vehemently opposed to state involvement in socialism.

http://www.academia.edu/6681088/Washing_Away_the_Sins_of_Deb...