A bet din might even decide to pasken secular tort law on the assumption that in a democracy people accept on themselves obligations that are enacted by their representatives (Rav Herschel Schecter holds that a democracy is a shutafut between all citizens Jews and Goyim alike).Even if that is not din they might use it in their power to make a peshara. As for business competititon, the whole purpose of limiting competition is to protect people’s parnassa. If the fact that a Jew does not open a competing store just means that a Gouy will the purpose is not served.
BTW, there is bankruptcy in Tora law. It’s called “shmittat kesefim”. While Hillel effectively eliminated it with the prozbul this could be a snif for a bet din to patur the bankrupt.