Ideally, not in real terms: debt will be extinguished, but that debt has already been spent into the economy. The underlying asset equity (say, a house) will be transferred to the debtor. Some non-debtors (not many, in todays economy) will get a big immediate cash influx, but most of them are wealthy and will save, rather than spend that cash.

Relatively, the wealth of the poor will increase more because, say, 100k, is life changing for a poor person but not as big a deal for a rich person.

The important part is reducing the total debt load and the exponent sitting on top of it.

Would it be perfect? Of course not, nothing is. But it's the fairest way I have heard of to broadly reduce the debt load in a manner that addresses the underlying issue of too much debt.