Banks didn' t lend you money because you' re smart and you' re worth investing in, but because your parents have assets to match your debt.
The banks will come to liquidate the family assets, foreclose their homes.
The vast majority of CTC cadets affected by the latest contract offerings - who a)are not 'pay-to-fly' pilots in the same way as the ATP/Fly320 people talked about in the last few posts, and b)are the people at the centre of the original subject of this thread - do not have secured funding.
The debts are in their names, as an unsecured bank loan. Nothing to do with their parents property or assets. The banks - specifically in the case of CTC, HSBC - offered the funding on an unsecured basis. The banks are in no position whatsoever to start liquidating families' assets.
The same does not apply to later cadets, who have started the course in more recent times after the unsecured funding dried up. But while fly_antonov's point stands when considering the wider job-hunting, low-houred, type-rated but only 200hrs on light a/c community, this does not apply to those emerging from the CTC Wings hold pool right now. For some of them, bankruptcy - without costing their families their homes - is an option. And, in some cases, the only one.