i think this is a situation where words are kind of hiding what really matters. what people care about when it comes to 'default' is how this effects the debtor

i think this is a situation where words are kind of hiding what really matters. what people care about when it comes to 'default' is how this effects the debtors ability to pay in the future and renegotiating debt is a sign that someone may be less able to pay in the future compared to someone that continues to make payments normally.