More specifically, when someone takes out the highest loan amount from the bank that they can & then flees the country in order to not pay it back, what exactly happens in such cases?
In: Other
This sounds like fraud and I’d be concerned that this would be a crime. And committing a crime and then fleeing is just adding to possible criminal charges. If you come from a country with extradition treaties, it can be pretty tough to escape to a country without one. Particularly a country that you would actually want to escape to.
The one exception maybe would be if you have citizenship in this secondary country. France, for example, won’t extradite its own citizens even if they happen to have citizenship elsewhere.
As others pointed out, banks don’t just hand out loans for shits and giggles. You usually have to take a loan out for a very specific purpose. To fund a business expansion, purchase a vehicle or a home, etc… They would be able to seize those assets if you defaulted on your loan, and possibly any other assets you may have.
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