What is the point of asking for a loan equal to the collateral value of the asset? Why then should he return the debt if the creditor has already received the pledge? Why is a loan repayment required?
A loan repayment is required because it forms part of the original agreement between the parties. It has nothing to do with the value of collateral assets.
You shouldn't even ask for a loan if you think the loan doesn't need to be repaid. Instead, you should sell your alternative assets instead.
I thought there was a deal between them that looked like DeFi loans. He borrowed about $200 from a creditor, saying that he didn't work, maybe that's why he couldn't repay this loan to him? Do you know what collateral he had?