Think of it like the Great Depression. The Altis stock market crashes, banks foreclose, inflation skyrockets, mass unemployment, anarchy in the streets. In comes APD to implement pretty much Martial Law, and the State appropriates all of the land, and citizens assets to pay the debt.
If I were the admins I'd tell everyone "hey, remember your massive (or small) empire built upon sin and crushing those smaller than you under your bootheel? guess what, all gone. The Government of Altis thanks you for your property and assets, of which now have been acquired by the state. You may reacquire your aforementioned by simply buying it back from the state before someone else buys it"