Final answer:
Declaring bankruptcy, selling off assets, and paying creditors are actions that can generally lead to a debtor's release from its debts.
Step-by-step explanation:
A debtor can generally be released from its debts through actions such as declaring bankruptcy, selling off assets, and paying the creditors as much as possible. For example, if a corporate bond issuer fails to make the payments to its bondholders, the bondholders can require the company to declare bankruptcy and sell its assets to repay them. It is important for investors to diversify their bonds by purchasing them from different companies to reduce the risk of all bonds going bankrupt and not paying.
Actions that generally cause a debtor's release from debts include bankruptcy proceedings, where a corporate bond issuer that fails to make payments may declare bankruptcy, liquidate assets, and attempt to pay creditors as much as possible. Another scenario could involve the negotiation of debt restructuring, where payments are restructured by lenders. Additionally, in some historical contexts, debt relief through legislation like 'stay laws' or the cancellation of debts, referred to as the Law of Jubilee, provided relief to debtors.