To me, the End Days Battle (i.e. where things really go in our economy) seems to be a fight between Contract Law and Property Rights.
Bankruptcy establishes a pretty clear hierarchy:
Contracts lose to Property. Your creditors get to claim your assets, regardless of the weird contracts you wrote that obligate you to pay all your assets to your nephew.
And I must point out, that in this regard, CDS is just a Contract. It's not Property. And as we've written a lot of bad contracts in the last five years that nobody can pay for, at some point somebody's going to blow up a lot of them.
I bet that even nationalization can't pay for some of this stuff. Didn't work for Iceland.
Really, some of the contracts just have to be torn up.