A paragraph in the Past - can Present Simple be used?

Hi,

I had a test and the fill-in-the-blanks paragraph (all tenses possible) was something on the lines of (after completion of the verbs I knew):

"I met Gil in the park about a month ago and we talked… I promised I would call him. After about ten days I called him but he didn’t answer. I went to see him. His mother opened the door and told me that he had escaped from the poice because he (1)_ (have) many debts. I wish I (2)__ (know) as I think I (3)_ (can help) him. Probably it (4)_ (be) too late.

Can I please have your opinion as what would be in 1,2,3, and 4? In particular, in (1) can it be both “had” and “has”?

Thanks.

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I would prefer that you fill in the blanks first, and then I will check your work.
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Okay, here’s my guess:

I met Gil in the park about a month ago and we talked… I promised I would call him. After about ten days I called him but he didn’t answer. I went to see him. His mother opened the door and told me that he had escaped from the poice because he had_ (have) many debts. I wish I had known__ (know) as I think I _could have helped (can help) him. Probably it is (be) too late.

Yes, in number one, either can be used. You would say “has” if the debts are still outstanding, and not paid for, but you would use “had” if the debts have been paid off.