Originally Posted by rickair7777

That was an era when BK was allowed as a matter of bookkeeping convenience, vice last-ditch survival option. So the court probably didn't see the equity in wiping out common shareholders if the company was only moderately distressed.

But laws have changed since, you need to be in really bad shape for the court to even entertain a BK plea now. That's for corporate, as far as I know individuals can still load up the lifestyle on credit cards and then just tap out at any time, no questions asked.