Tell him to file bankruptcy, save your car, save your house, you’re allowed to hold onto some assets. If he doesn’t have any assets, a simple chapter 7 could be less than $2000 in fees. I used to work at a bankruptcy law firm. It’s actually quite easy to let the fiat system fuck itself.

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He doesn't want to do that because he thinks it'll prohibit him from getting a mortgage in the future.

2–4 years, depending on the type of mortgage he gets. FHA/VA is only two years. Conventional mortgages are four years.