I bet the ILs do NOT know the true story behind H's precarious financial situation and maxing out on his credit cards. Do you honestly think H will say, "My bad...I am blowing money left and right. It is all on me." to his family?? Nope. He is hiding the true extent of his financial mess from everyone.
The best thing to do when faced with people who are into stirring up drama is to step away and not engage at all.