Isn't the point of bankruptcy to wipe out all debts after they took too much risk and/or just got unlucky? In theory that sounds better than giving people a few

Isn't the point of bankruptcy to wipe out all debts after they took too much risk and/or just got unlucky? In theory that sounds better than giving people a few more months to keep going with their too-much-risk-taking approach now loaded with a new debt. I don't know if that's the way it works in practice, but hell we're just all armchair economists anyway. ;-)