“Can bankruptcy destroy money? Here, “money” is used in the sense of wealth”
“the answer is no.”
Wrong. You totally ignore the value of brand names (sense of wealth) that a company may have, or it’s goodwill value (sense of wealth) . Plus the value of it as a whole, may be have more value than the value of it’s separate parts sold off after bankruptcy. If Trumps declared bankruptcy and his buildings with the name Trump on them were sold, and instead had the name “Joe” on them, those buildings would almost certainly be worth less. Brand names sell much than the the dead identical product, made from the same assembly line or food plant. All those wealth components can drop to zero. That’s “sense of wealth” going bye, bye.
Brand names do not disappear upon a bankruptcy. If the brand is valuable in spite of the bankruptcy, the parties involved will act to conserve that value independent of the financial reorganization of the firm. It’s wrong to suppose that they’re idiots. They’re not going to allow significant value to just disappear.
To kind of rescue you, many companies go bankrupt because their brand no longer have value. In the example I gave, I didn’t say why the firm was no longer as valuable as its cost. It could be that the lose of value to the firm is due to its brand no longer adds value to its product or service.
This is another case where I was curt in order to return to the question of what is the connection between money and inflation. You went down a rabbit hole.