Well, but if a company refuses to repay its debt, this is called a bankruptcy isn't it? In U.S. it is either chapter 7 or 11 and means anything from takeover/se

Well, but if a company refuses to repay its debt, this is called a bankruptcy isn't it? In U.S. it is either chapter 7 or 11 and means anything from takeover/sell of its assets or outright liquidation. At least in any more or less democratic countries, a company cannot just fail to pay its debt with no consequences. In case of a bankruptcy, only stakeholders of the company suffer: management team simply gets fired, employees either get another job or work for the new owner if assets are sold. Same here: i am not suggesting making private citizens responsible for the national debt directly, just the government, which should either cede some part of its territory, or gets dissolved outright.