Lol exactly what liability is it you imagine you will zero out? If you are talking about the contra-account (something like allowance for bad debt), that’s all well and good - the balance sheet is already zeroed out and you will will charge an expense account when the loan is finally removed.
It’s not a good thing.
If the loan goes into default, part of the entry would look like:
Credit Asset A/R 150,000 - thus removing the asset from the BS
Debit Liability O/S loan 150,000 - thus removing the liability from the BS