money gained from “refinanced

[pencilneck]

money gained from “refinanced for toys” = fully taxable income at the time of debt forgiveness.

His problems will not simply go away by defaulting, and he may be far deeper in debt than either he or his parents realize.

But, yes, people like this will dribble out for years to come. Ditto on this as well: “I see ruined credit for their parents in the future.”