My aunt has a personal loan from the bank and she is in the nursing home with Alzheimer's. What happens if she cannot pay it?

She remains responsible for it until her death. Then it comes out of her estate.

When she went to NH, did she go there by applying for Medicaid to pay the bill? If so, contact your NH social worker or the Medicaid workers and tell them about the bill. It's very possible it could be an allowable payment out of her money. Also, if there is a coowner on the loan - every effort needs to be made as far as contacting medicaid worker so cosigner on loan doesn't get stuck w/the payment. Be sure to let social worker know what the loan/money was used for.

If she has no assets the bank will have to write off the loan. If she has assets the bank can pursue those assets such a putting a lien on any property she own.

If someone cosigned the bank could go after the cosigner.

Is she on Medicaid? If so, they can't attach her SS. Does she have a house? Then maybe they can put a lean on it if the loan is substantial. If she is private pay, then the loan needs to be paid.

You need to talk to the bank. You are not responsible for the loan. If she has no money, it will be a write off for them.

Does she have any assets? Bank may wait until death to put a claim against any asset(s) she may have