Maybe its Cash Flow, or the Friend is awaiting an inheritance or some other such pie in the sky. Maybe some rich relative will lend money after Bankruptcy, it happens.
Personally, I lent money to a Friend on a Promissory Note, who had a very good and secure job, after he completed his Bankruptcy. I earned a good Interest Rate and was paid in Full, eventually. Though had to give him a kick in the butt once, that I was going to turn him over to Collections and I would have. I had an Agency I worked with when I had my Business and they would have taken it.
Relatives with Businesses that filed 11/13 were able to get financing after filing to keep the business afloat and restructure and emerge from Bankruptcy.
People do strange things in Foreclosures and Bankruptcies. I have gone with Friends/Family to some of the Trustee's Hearing and heard all kinds of crap from those before us.
Anyway, since we have heard little back from the OP, this thread is more of speculation and an exercise. Although, doubt the Friend has the kind of sophistication mentioned above.
OP asked some questions and I gave some resources.