I'm needing some advice regarding identity theft. Fortunately it isn't me but I'll do my best to explain the story. Disclaimer..um well aware parties are wrong, I'm just trying to make it right.

About 7 years ago, my (now) husband was working a job that paid him strictly cash....and had been for about 2 years. Anyway, at that time (I wasn't aware) but my husband's father had approached him with an idea that was completely wrong. He wanted to use my husband's social security number to work under so that he could avoid paying backed child support and in return he would file taxes and give him the return. For whatever reason (unbeknownst to me at the time)he agreed.

Again, fully aware of how wrong it is, but my husband was really kind of ignorant to how things worked and didn't see the harm.

Anyways, that lasted only a few weeks because in that time, his dad had applied for a credit card and instead of it going to his address, it came to ours..which is where I caught on. I immediately called the IRS and informed them of the situation (that his father was using his ss number and they required a police report to further press charges. For whatever reason (and I guess I understand) my husband didn't want to press charges.

Fast forward to 2 years ago...we move and went to apply for a home loan. Everything was fine until the lender came back and told us that my husband had too high of a debt to income ratio to be approved. We were kind of dumbfounded and asked to see how and why. Turns out, when his dad initially when it all came about 7 years prior had went and opened up and account with a credit union under my husband's identity. I guess I should also state that my husband is a junior...so they have the same name, just different birthdays and ss numbers obviously. But my father in law is using my husband's social with his own birth date.

We immediately contacted him and asked what the hell. He claimed that he totally forgot about it...and that if we allowed him to pay off the car loan and personal loan within the account, he would close it and that would be that. I completely disagreed (which caused a huge falling out) but again,my husband agreed with the understanding that when it was done, it was done. He pays off the debts about 6 months ago...he tells us everything I done. We have credit karma so we know that it takes a couple weeks for everything to fall off. And it had.

2 months ago, he's all but breaking his neck to show us his new motorcycle he just got. I looked at my husband and instantly knew what he had done...but just as I looked at him. His dad said, "I know what your thinking, but I used my stimulus check and took a loan out on my 401k to get this." I simply said "we'll see"...and sure enough, 2 weeks later what shows up...a 12,000 loan on my husband's credit. I'm baffled. And my husband approached his father and was like...what the hell. To which his dad replied that he was going to do this and if he was turned in, that he would say that we agreed to it and that we would get in trouble as well as co conspirators ...so now my husband is terrified because he doesn't want us to be in trouble.

Any ideas on what we do?