Perhaps the idea is that with bankruptcy, your creditors are wiped away — you don’t have to pay them. The creditors are screwed, but the entity declaring bankruptcy is cleansed of that problem.
But a tendency toward corruption is harder to get rid of. Bankruptcy will not fix that problem.
My focus was on the “creditors getting cleansed” statement. That is simply not the case, you your last post pointed out. They get shafted. As for bankruptcy not solving corruption, I have no qualms with that idea.
Your statement explains mine.
Bankruptcy is like cleaning toilets.
The porcelain is cleansed white, but then it is used again, in the same way.
Anyone doing business with Detroit after the bankruptcy on anything other than a cash basis is certainly asking for the same result.