What about people who are poor but didn't take on any debts and have been working hard to make ends meet? They will be the biggest loser in all this as they won't own any properties. Most of the population will be owners of property and maybe 30% will have nothing... They will be the serfs in this debt-free society.

The only way this can be fair is if the government agrees to distribute assets for free to people who don't have debt or property. The value of assets granted should be proportional to their incomes. This should occur before the debt jubilee is announced or else it will distort asset prices and these people won't get a fair deal. These are the most financially cautious people in society so it's not right to leave them out.