You take on new debts and try to persuade creditors you'll be paying them off real soon now.

This isn't snark - it's literally the new normal in many sectors.

Yeah, if the creditor has a choice between (maybe) getting paid at some point in the future or definitely not getting paid at all, some will opt for the maybe.

It would be different if they could resell the property, but in a market where no one is buying, it's a different story.