No, no, bro! You can't say only one option. There is another option and that is repay previous loans which has been scammed by his/her alt account/accounts.
Sorry man, you are absolutely right. If you or any other has such proofs, then repaying his previous debts is the first and mandatory thing. However, even if he repays them (which I seriously doubt that he will ever do or admit it), collateral will be the only way for him to get a loan, even for 1 satoshi.