My 2 cents

While this approach may be LEGAL, ignoring old debts is far from MORAL, once you do have the means with which to make good on the contracts, which you entered into voluntarily. This is part of what’s wrong now.
People want to get off of the hook for mistakes that they have made. It makes everything cost more for everyone, at least those moral enough to pay their own obligations. Think, “What would grandma do?”