Do you speak from experience of using this technique? Or are you summarizing other online accounts?
As someone who filed personal BK 15 years ago, I have mixed feelings about this. On the one hand, I am a strong believer of personal responsibility. But on the other hand, I loath the credit and debt collection industry with every fiber of my being, with their many awful tactics.
What you describe sounds like anyone could default on any old legitimate debt and then with some paperwork and brass balls simply get away without paying it back. Why the fuck shouldn't I max out my credit, stop paying the house, car, and credit car bills, and then reap the benefits of getting in the clear? This seems too easy (court/legal legwork aside).