RE:RE:RE:RE:Wednesday = Hump day Doesn't quite work like that - the debt is guarenteed by certain assets. It is up to the loan organizer (debtor I shall call em) to decide what they are going to do with said debt (do they want to call it, extend it, let it fall through). They definitely have a right to call it but assets dont change hands like that, think of like a vehicle repo. There is normally a period of delinquency before they send a tow truck to come take your vehicle. Even when sending the tow truck, they dont send it if you enter bankruptcy proceedings (at least right away)
Bankruptcy proceedings are designed to help protect the assets and ensure the most value to the stakeholders with the business appearing on the otherside which often leads, even a debt guarenteed by an asset, almost always empty bag handling so its not normally ideal to have a company go this route.
Granted, it does happen all the time, and its normally the business that starts bankruptcy proceedings when no debtor will give leeway on the assets which means they all lose in the end and it becomes a recovery of "what is left"