Lets say i'm level 15 and I put items for level 15 on me, people attacked me and lowerd me by one level to level 14.

Does the cloths for level 15 stays on me or do they get off me?

And if they get off from me and I don't have any more space on my backpack, what happens to them?

they would go into your backpack even if you didnt have enough room it would just say, 10/5 , trust me socio likes to over fill my bag with crap

I think I set it to just leave them equipped.

But, the moment you change your clothes, you will notice you are too weak to wear them anymore.

It is safer than just having them drop off your character, and overflow your backpack

Lol

Thanks for answering