I have a feeling you're trying to reinvent the wheel. Bond insurance, as well as various forms of bond guarantees, exists and is used when it make sense. Junk bonds have a non-trivial risk of default (reflected in their yield), but are actively traded. Moreover, if you are talking about bespoke loans, their conditions are entirely determined by what's in the contract, so there is nothing preventing the borrower from negotiating some appropriate "hardship" clause.
What do you want to make possible that is not possible now?
It's not about possible vs impossible. Its about industrial and social standards.
If a private individual goes to a bank and asks to take out a loan, and then starts asking about the possibility of more forgiving terms in the case of a default, the bank suddenly becomes incredibly suspicious. Planning for unexpected emergencies is seen as admitting that you intend to default. As a result, banks largely don't let people negotiate for generous debtor protection clauses, or, when they do, they only agree after incredibly punitive interest rates are agreed to. ...
Another month, another rationality quotes thread. The rules are: