If you both agree about the amount owed, and would like to work out a way to protect the lenders money, without swamping the borrower, you could agree to do something like:
$7,500 payable 10% interest only for 1 year, w/the balance due at the end of the term. That means a manageable payment of $62.50 a month, for 12 month, would protect the lenders money (or whatever interest rate they agree to, for whatever period of time). This would allow the borrower to service the debt, and hopefully recover to pay it off in full.
If even in those circumstances, one, or both, of you aren't confident that the borrower would be able to honor this agreement, perhaps the borrower could pay with some other thing suitable to the lender. If there is nothing suitable, the borrower could sell something to the lender, minus the money owed.
I've seen a situation where someone needed money, and there was potential lender who didn't have complete faith in the would be borrower's ability to repay. So the one with the money purchased the house from the one who needed the money, for just the amount needed, and gave them back a lease/option (option was same as purchase price +10%) back as part of the deal. In this circumstance, the one who needed the money actually was able to make the lease payments, protecting his option, and then sold the option to a buyer for the house. If the borrower/tenant couldn't have performed, the lender/home owner was happy with it, because the real estate was more valuable to him than the money it cost him. He was paid off, and made 10% on his money in less than two years, which was also a fine deal for him.
I mention this as it might be a model that works in this situation.. perhaps there is something BJ could give Coconut (of much greater value to Coconut than is owed) as payment for the debt... that Coconut would agree to sell back within the next year for whatever amount you can agree to (amount currently owed, plus whatever interest is suitable, I'd imagine). At this point BJ would have satisfied his current debt, and have the option to purchase his property back. In either event Coconut would be satisfied. Coconut could either keep whatever it is, or sell it.
I know this type of thing isn't what you guys had in mind originally, but if you give it some thought, you'll come up with some way/s to solve it.
BTW, I don't really know how much is owed.. I don't really know that anyone was looking for my advice, either. lol.. I sort of skimmed through the thread before writing this. So, anyway, plug in whatever #s work if interested.. and if not.. just ignore this.