Older Volvo with broken timing belt - what would you do

[XS4]

Friend of mine is having some bad luck lately. His sole source of transportation is a 98 Volvo turbo wagon (V70 GLT I think) Long story short - the timing belt broke and the dealer mechanics that inspected it say it caused internal engine damage but there's no way to know the full extent without paying to open it up. From what I've read it's an interference style engine and it's not uncommon to bend several valves or cause more serious damage to the head or pistons or block. It might be 1500-2000 or more to repair. He couldn't afford this so rather than pay for a new timing belt install (which wouldn't fix any damage) he towed it back home. He still owes on the car. Would you pay more money to diagnose this, repair it, drop a used engine/head in it, or junk it? All the options look pretty lousy to me - any good ideas?

[Chunga]

I is usualy a new engine you put in. Or a another used. The valves are not only bend, they have properly gone direct in the cylinder and crashed there.