[Mark was here]

Nope, not at all.

I was thinking that in bankruptcy, the government takes what ever wealth or or property that exists, and decides how it will be distributed, picking the winners and the looses.

[Uncledave]

It’s not that arbitrary in how the property is divided. There is a pecking order established in bankruptcy law. The government doesn’t “take” the property, unless it has a claim (tax lien, etc).