Bankruptcy is the safety net to bail out individuals. If you find yourself with too much debt to ever escape, regardless of how much it is and (mostly) regardless of how you got it, you get a reset button to wipe out all the debt you can't pay. The only negative consequences of bankruptcy (beyond the fact that it's not free to file) are the ones caused by the fact that it's the safety net; it's embarrassing to be forced to take it and lenders will judge you for needing it.