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You SHOULD repay, if you value your ability to get further credit in the future, but you are not OBLIGATED to pay beyond the value of your word. A good man values his word and WILL REPLAY! But no lender should ASSUME they will get repaid unless they get collateral.

This is why it takes time to build credit based on your word, unsecured credit is something that you can ease into, not something that is a right or free privilege. Credit card companies charge huge interest rates to offset bad loans, it's how they turn a profit in a forfeiture laden environment but that doesn't mean they don't have responsibility to carefully dole out the credit, something they seem to have forgotten and our law makers seem to be following right behind them in this idiocy.

Prove a man is worthy of unsecured credit before you extend it using secured credit and small unsecured loans. Then extend more and more as the person proves themselves over time. But never forget that loaning in an unsecured way means that you do not have security that the loan will be repaid.

Should the loan be repaid, absolutely, but is there any obligation if the borrower is willing to loose credibility or simply falls on hard times and cannot pay? No way!

Again I say, lender beware!!! If they are careful, we all win as fewer and fewer folks fall into the trap of credit.

A promise is only as good as the word of the man giving it and sometimes we all have to break a promise. You don't make the promise thinking that you'll break it, but things may change or you may learn something new. Either way, things happen that change ability to pay. Do we stand with the lender or the honest borrower? If they borrower isn't honest, then that's different, but bankruptcy is designed for honest folks who have hit a difficult time so that they can have a fresh start. Unfortunately both sides have abused the credit system. The credit cards companies extend credit beyond what is reasonable and some people take advantage of the bankruptcy system and do file when there are better answers.