For one, it is complex and cumbersome to use for many lawyers, requiring them to create charts of accounts and new sub liability accounts for each new client. (lawsitesblog.com)
Also note that in asset accounts, positive numbers mean «more assets», whereas in liability accounts, positive numbers mean «more liability». (mathstat.dal.ca)
I would just create a single liability account to represent the loan, starting with a $ 0 balance. (money.stackexchange.com)