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?
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Banks don’t readily give large personal loans, especially out of size to net worth. Credit cards have punitive terms (and limits) for using them for cash and banks want collateral for direct loans.
So when the loan isn’t paid, the home country collateral will be seized. Sure, one can think about ways to sell or move that too, but this starts to become criminal fraud fast and now you’re an oversees fugitive, not just a loan deadbeat.
Credit cards always have a “take the money / stuff / trip & run” risk, which is why the interest rate is so high.
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