> What if there was a loophole in the law that allowed one to not repay debt. Bankers will get that loophole fixed asap.

Uh, no. It's called bankruptcy.

One view is that bankruptcy laws in the US created a powerful bankruptcy bar whose special interest in enriching themselves through consumer-friendly bankruptcy laws became more powerful and focused than the special interest of banks.

https://legacy.voteview.com/pdf/Berglof_Rosenthal_Bankruptcy...