Is Bankruptcy the Solution to Debt and Unsustainability

Industrial capitalism has grown to the point that people are dependent on unsustainable economic practices to pay off debts that were incurred by ramping up industrialism to the point of unsustainability in the first place.

Republicans ignore/deny climate unsustainability altogether and Democrats recognize it in order to use it as an excuse to generate more government spending to keep the debt (and thus global industrialism) churning away.

Could some kind of bankruptcy-type restructuring be the solution where people and businesses are required to restructure their economic/business/work/consumer practices as part of an austerity program that reduces their overall budgets/spending while including some debt-forgiveness as part of the reforms/restructuring?

This would be different from any Green New Deal, which involves increasing government spending instead of reforming and restructuring it in a way that reduces dependency on unsustainable economic practices.

Unfortunately, it would be wildly unpopular with the global economic community that relies on maintaining debt and spending levels for their revenues and income. Unless they can agree on a restructuring plan that justifies their revenue losses, there could end up being hell to pay.