RPH owes everybody money, has living expenses and has no job. You loan him $700 for a bicycle to find a job. In return for the loan you take possession of everything he owns of value as collateral until the loan plus interest is paid in 60 days.
At the end of 60 days, RPH still has no job, no money and is further in debt. Do you now keep everything you were holding as collateral or do you just give him everything back and get in line with every one else from whom he borrowed money and expect to be made whole?