People “spend irresponsibly” for a ton of reasons like medical expenses, paying for a funeral, having mental illnesses that they don’t even know about, etc. Life happens.

They received money from a rich guy or corporation who knows of the risk of their money going “poof.” Creditors aren’t mom-and-pop shops, and they will survive if an investment doesn’t go well. The same cannot be said for the person in deep credit card debt. Oftentimes, the lenders are the ones who have predatory practices and purposefully make it easier for peoples’ debt to spiral out of control, and you shouldn’t feel bad for those lenders.

It’s irresponsible for banks to loan money, they pay many people salaries for risk assessment before loaning it. Also their loan is insured so even if you don’t pay it back they write the loss off.

you do realize that bankruptcy does have consequences, right? for one, it’s nearly impossible to find a new place to live if you’ve ever declared bankruptcy. If you work in certain sectors, you can lose your job. if you’re a government worker, you’d lose your security clearance or probably even a public trust. If you lose your job, new companies that might hire you would likely do a credit check for some reason and find you unqualified because of that bankruptcy.