That is at least in theory. Since a considerable part of the economy is in the gray zone, there are ways of dodging that. Large part of the law system is corrupt, so well connected people always find a way to be untouchable. The system is also inefficient so lots of those debts exist just on paper. Basically, you can't go bankrupt as a person, and you wont be sold to slavery, but you will effectively still own the debt and the only way to not repay it is to work in the black zone outside of the system, or wait so long that the lenders write it off themselves (after a few decades or so?).
The USA financial system that allow for bankruptcy is part of the reason that we are an entrepreneurial nation.
Failure is part of innovation.
In many there is, though it's more restricted in some countries than others, which leads to https://en.wikipedia.org/wiki/Bankruptcy_tourism
At least in some "debtor's jail" systems you could get your rights back after spending some time incarcerated.
Do you want to live in a society where you and your family can be sold into slavery if you fail to pay off your debts? Because that's the logical consequence of not allowing debts to be discharged from bankruptcy, regardless of your ability to pay.
Being a money-lender shouldn't be a license to print risk-free money.