You're essentially saying that society is the group that must pay in the event of one person's lack of personal responsibility affecting another person.  I disagree.  I say that people should acquire insurance on their own free will that would protect them from the lack of personal responsibility of others.

A great example of this is called "Uninsured Motorist" coverage.

Granted, one could certainly argue that the cost of this insurance would go up quite readily in the absence of a requirement to have motorist insurance, but at least people would have the freedom to choose what risks they want to take in that regard.

Also, bankruptcy is a cop out.  If you owe someone money, you pay it, even if it takes the rest of your life to do so.