Legal Question in Criminal Law in California

If the borrower did not intend to repay the debt when he made his agreement with the lender, then he committed fraud. If he intended to pay it back but is unable to do so, then he did not commit a crime. He is civilly liable for the debt either way.

I agree with Mr. Hoffman. My gut response when I first read this question is that someone is threatening criminal charges if you don't pay them back. In California the prosecutor has the discretion over whether or not to file charges, not private citizens, and such a filing would be incredibly rare. Such an issue of nonpayment would most likely be civil, not criminal.