> The state cannot corrupt itself

Obviously if you define the term "corruption" so that it is inapplicable, then there is no "corruption". FWIW I'm totally on board with viewing "the state" as a singular malevolent actor, I just don't think that paradigm is particularly useful here.

For there to be corruption in this case there would need to be one state organization paying off (directly or indirectly) people in another state organization so the first organization can get what it wants. Is that what you are suggesting is happening here?

My definition of corruption does not require someone being paid off, rather just the decision making process of an authority being well, corrupted, by common interests / worldview / cross pollination. In this case, the courts are treating claims by large institutions as prima facie valid rather than giving each party equal standing and making the claimant substantiate the basis for the debt.