Ban personal liability on loans (full recourse).
If the lender can only take the thing (like repossession of the car or foreclosure of the house) and can’t go after the borrower for the difference, lots of problems solve themselves.
Credit can still exist in various secured ways, business credit is barely impacted for real businesses, and people stop being able to go way below zero.
How do you apply this to loans for things that cannot be repossessed, like college degrees or medical treatment?