The guys play is most certainly chapter 7 after a default judgement. Not acting accelerates the process with less legal expense. This advise was probably recommended to him by an attorney believe it or not. I was once recommended similar for something on a much smaller scale.
Unless he has very little to his name, even mounting a procedural defense would typically be better than just taking a default, but you are right that in some very particular circumstances it is a reasonable play.
If he's failing to respond under legal advice he must either believe he has not much to lose from entering bankruptcy, or that his case is so hopeless that it doesn't even matter.