B.C.
I have two SIL's that don't talk to me except to say "Hi" and only then if we are in a position where they have to or look childish. They and I disagree politically over Prop 8. (Gay Marriage).
Just ignore your BIL and his wife. If anyone says anything or asks why tell them about the silverware, the unpaid rent and the way they badmouth your parents and any other drama you care to. And be sure to tell your MIL and FIL if it comes up. If you think they are going to run to your MIL and FIL with more tales of woe, call the MIL and FIL and forewarn them. Then find way to endear your MIL and FIL to you and your husband.
Why? Because if your BIL and wife want to tell tales and you worked it right, what they say will be unbelievable to your MIL and FIL. Then they will look like perpetual liars and will completely loose their credibility. Like the story of the boy who cried wolf. I could give you other examples, but you get the idea.
My brother told my wife I was sleeping around. My wife knew better. He had no credibility.
Good luck to you and yours.