You're describing the difference between unsecured and secured loans. The parent explicitly stated that they were talking about unsecured loans (where there's no tangible thing to repossess).
Oh wow, reading more into it, some credit cards are actually unsecured (but some aren't [0]). However, credit card companies can still sue you even if it is an unsecured loan and then repossess some of your stuff depending on the state [1].
[0]: https://www.nerdwallet.com/blog/credit-cards/credit-card-bil...
[1]: http://www.natlbankruptcy.com/credit-card-lawsuits/