Haven't western countries typically addressed the issue of protecting borrowers through corporate entities and bankruptcy protections? If my company borrows mo

Haven't western countries typically addressed the issue of protecting borrowers through corporate entities and bankruptcy protections? If my company borrows money, then goes bankrupt, the lenders cannot come after my personal assets unless I've personally guaranteed the loan, or broken certain rules about mixing personal and business accounts (allowing the creditors to "pierce the corporate veil"). In personal bankruptcy, my primary residence and vehicle are protected up to a certain value, along with retirement accounts. It certainly doesn't seem like a pleasant process, but at a theoretical level the rules generally seem fair to me. One huge problem is that people don't know the rules, a situation which I suspect lenders and debt collectors are happy to encourage. There certainly are a lot of corrupt financial practices, but I think lending money can be done fairly (at least in theory). I find other perspectives on the matter very interesting. I'll be sure to read some more about Islamic finance!