Should my sister declare bankruptcy or just not pay her debt?

Question

My sister is bipolar, will never be able to work, is on welfare and somehow managed to run up $15,000 in credit card debt. She clearly will never be able to function in the real world again, so doesn't care about her credit rating. Bankruptcy costs $1500 to file, where she lives in Canada, and she is thinking she will just not bother. She hopes the credit card companies will stop calling and one day just write off her debt if they can't find her. Is she correct? What should I advise her to do? She can barely cope with life and needs advice.

Answer 1

There are a few things you can do, but I wouldn't advise just ignoring this and hoping it goes away.

Your creditors can and will sue her for the money owed. The only way they can not sue her is by filing bankruptcy.

But, it's hard for me to suggest filing bk on a $15k debt.

I would just have her contact her creditors and explain her situation. Ask them to stop charging interest and try to make a deal with them. Pay them a small amount every month, as much as you can afford.

You may also want to try contacting some mental health institutions for advice. I'm sure they have dealt with plenty of people in this same situation. Ask them what their past clients have done to resolve. They may even have a program they suggest that could help you guys out.

Good Luck.

Answer 2

You should visit FINANCE-SOLUTIONS.INFO- I am sure here you can find the best option for you

RE Should my sister declare bankruptcy or just not pay her debt?

My sister is bipolar, will never be able to work, is on welfare and somehow managed to run up $15,000 in credit card debt. She clearly will never be able to function in the real world again, so doesn't care about her credit rating. Bankruptcy costs $1500 to file, where she lives in Canada, and she is thinking she will just not bother. She hopes the credit card companies will stop calling and one day just write off her debt if they can't find her. Is she correct? What should I advise her to do? She can barely cope with life and needs advice.

Answer 3

Card companies will NOT just stop calling and forget the debt - ESPECIALLY one that sizeable. (It was a hundred bucks, it would cost them more to chase her forever.) Besides the point, if someone in your family is awarded guardianship of her down the road, should she become completely incapicated, THEY would be on the hook for the debt. OR she will be sued for it.

She's better off filing bankruptcy in this case.

Answer 4

Shred her credit cards for one thing, I am sure she cannot use them now anyway. To clear her debt she would need to clear up her credit report. What does her physician say? If he or she is declaring her incompetent, then yes, she will never be able to hold a job and be responsible.
They will eventually stop calling her, she is right on that.

Answer 5

She should contact the credit card companies and try to work something out with them first. Even though she is on hard times, no one should just walk away from their debt without trying to resolve it in some way.

Answer 6

the credit card companies will not just forget...eventually, they will pursue in court, which is a big deal. I don't know about canada, but in the US, debtors can have their personal property -i.e. cars, boats, houses, etc, taken by the courts and auctioned off to pay off debt.

Answer 7

First of all you better make sure she has no access to credit cards so she can't keep charging. Secondly, they will NEVER leave her alone. Try calling the Dave Ramsey show and see what he says.

Answer 8

She should try as best she can to pay off debt. Or you know where she WILL be paying it off??

Debtors Prison.

Good Luck.

Answer 9

these credit cards are something else it is up to her on what to do.