It's based in Old law where your assets were physical stock and tools not brand name and ongoing business. It's also based on the British system where the upper class run everything, and they were more likely to be creditors than debtors.

It's not even just the pure bankruptcy itself. If you've ever been bankrupt you can't be a company director. You can't access all sorts of financial products (car insurance!?) until long after the bankruptcy is discharged. It's a mess.