But was the loan in India - cosigned by your wife's parents - for her college education, or was it a bank loan to buy a house?

Her parents, as co-signers are responsible for repaying the loan. It's very selfish that they stopped making payments, knowing full well that their daughter - your wife - can't seem to hold down a job, and when she was employed, wasn't responsible with her money to make very minimal payments. She's essentially ruined her credit, her parents' credit, and your credit.

I would urge you to find financial management classes for your wife to take. Community centers, and nonprofit places offer those. They are not classes in the pay-for way, but are meetings with financial counselors who review financial 101's about loans, saving money, etc. and teach people who are horrible with money how to save money. Assuming you live in San Diego, CA?

I totally understand your frustration. Your wife thinks that if she doesn't address the financial problem, then there is no problem. Anxiety around money is a real thing and it's one of the worst problems in people's lives, especially married couples. My sister has to support her family b/c her husband can't hold down a job and he's TERRIBLE with their money. He ruined my sister's credit multiple times, by trying to start his own businesses with partners who stole from him, or just up and quit and left my BIL with debt in the $50K range each time (he tried and failed 4 times so far in his life to start his own consulting business). And they have children to support and one with mental disabilities whose insurance won't cover specific therapy types. So, my sister is supporting her entire family on her salary and it's grounds for divorce but she loves her husband despite his ineptitude with money (whether he's conscious and feels guilty about it, or not conscious of his terrible choices).

If your wife is unwilling to address this loan and not even take a part-time job so that she can make monthly payments, since her parents stopped payments on it (prob. b/c they are fed up with their daughter being irresponsible), then know that this financial debt will be garnished most likely from your paychecks, if it hasn't been already. I don't know the international finance laws with loans. But you should seriously look into the country-to-country loan repayment policies.