I want to open a hotel and need a large loan. What happens if you can't repay the loan after the deadline?

The first is that in the 1980s, an uncle opened a clothing factory with a loan. Later, he didn't pay back the money. In fact, he has money to pay back. Finally, he returned the factory to the bank. This factory became the bank's property. Uncle stopped doing it after a few years of profit. It is equivalent to opening a factory with a loan from a bank, and returning the factory after making a profit is equivalent to capital. Nothing happened.

There is another person whom my family knows. He opened a printing factory a few years ago. As a result, I lost money and had no money to pay back the bank. Be arrested, life imprisonment. . . But now I'm on medical parole. . It is said that although this man lost money, he actually made money? I don't understand what this is all about.