Obviously you must consider the legal implications of this and take steps accordingly. But, I think you need to dig in a little and find out why you have such a visceral reaction to this. Is there something there more than fear for how this could implicate you and D?
You have been living apart for a long time and I think making it on your own without a lot of help. Assuming you are not legally bound by his debts (which obviously you need to confirm), what is that has you in such distress?
Of course it is ridiculous for him to do what he did, but we know these folks do ridiculous things all the time. With mine, I honestly prefer to see him do something, rather than nothing. Yours is a huge wallower, so I would think something that forces him out of that comfort zone is not necessarily a bad thing.
You are sweet, and lovely, and strong. This is not your mess. Try to let go of the expectations that he will behave in a sane or rational way. Take care of you and D and eyes forward.
