Then they have chapter 13 on their record for about 7 years and their credit score is in the crapper. Some people look at credit score for housing, jobs, loans to buy house, any CREDIT CARD. Kind of like shooting yourself in your foot. Well, that is how it used to be, maybe DEMON-RATS will figure a way around all that?
So what? That's what happens if you have a business loan that goes sour and has to be discharged. There should be some consequences to being a failed debtor. I don't agree with the blanket loan forgiveness idea (and I say this as someone who would still, almost 30 year later, still benefit significantly from blanket loan forgiveness).
Also, depending on the details, and the level of income, it could be a chapter 7 and not a chapter 13.
And your credit score stays in the crapper only if you don't start affirmatively rebuilding your credit as soon as you get your discharge. There are companies that will lend specifically to people who just came out of bankruptcy because, at a minimum, they know those people cannot get another discharge for 7 to 10 years.