I am not familiar with the way a person can file for bankrupcy but I found the article from Croatia that describes it. Same policy is, I believe, in all ex-Yu countres. You can translate it, sinc I'm not to "financial lliterate", to translate it in my own words. https://www.tportal.hr/biznis/clanak/zaglibili-ste-ovo-morate-znati-o-osobnom-bankrotu-20160812 I know that if company files for the bancrupcy, the founder of the company can not open new company on his/her name for next 5 years.

As I understand, when signing the contract with the bank for loan, both parties have to present evidence they have something to back up the loan. For bank that is not hard to present, and for person, in my case, is apartment we live in. The bigger the loan you ask for, the richer you have to be in order to support it. I don't know how it goes with a non-purpose loan. The bank will probably foreclose if you don't pay, or in the case of a loan with a guarantor, if you don't pay - the guarantor is obliged to repay your loan.