For those who are thus personally, but are living in multiple governmental jurisdictions holding massive amounts of debt collectively, i.e. most of even the best, most prudent, of us, be very careful lest they impute their debt down to you based on their ideas regarding your ability to pay it. It may or may not be legal, but then neither was GM's bankruptcy.
Deflation means lower prices and the price of labor is wages; that's why deflation means wage cuts. Virtually all economic activity requires both labor and capital, so during wide spread general deflation loans default, banks fail, capital dries up --it all adds up to massive layoffs and a severe economic collapse.