'The nice old man’s family now want to sue you for compensation but you are uninsured. You had looked into the cost of insurance but it would have pushed up your costs, so didn’t bother. Instead, you simply declare personal bankruptcy and avoid paying the family a penny.'
Wouldn't declaring personal bankruptcy mean you paid the nice old man's family *all your money*, rather than 'not a penny'? You're declaring bankruptcy because you can't pay your creditor, namely the nice old man's family, and so the liquidator gets to give all your money to the creditor.