The most likely outcome will be that as individuals take out loans on equity it will invested in stocks, bitcoin, and other assets. Then when the reset occurs there will be a redenomination of debt based on the new currency.

Here's the problem: If recent history is a guide, then when the dollar values for obligations are converted over to the new currency, the conversion rate will vary based on the type of obligation or debt instrument that is being enforced. It won't necessarily be the same as the currency rate conversion. Mortgages, energy bills, pay, groceries, bitcoin, stocks, bonds, may convert differently either by a stated conversion rate that varies or due to people wanting to trade the assets back into the new currency.

Those that pull equity out will run the risk of having the value depleted during the conversion in relation to the value of the mortgage. For those buying a house it will most likely not be an issue since the currency rate conversion will most likely relate closely to the home values.