Bankruptcy is a useful tool for those truly in need of assistance. If she were to file, she could discharge the debt she does not want to keep, but reaffirm those debts she wishes to continue with - like her house payment.
Her retirement accounts should be safe in the bankruptcy. Also, the student loans are not dischargable - so she'll have to keep them.
It is probably worth it to at least have a consultation with a local bankruptcy attorney to discuss her options.
Your answer felt like it was computer generated and not by a 'live' lawyer specializing in bankruptcy. I don't feel it gave me any direction.
I am trying to assist my sister. One thought was for me to take over her credit card dept and get it paid off for her, with her closing out all of her credit card accounts. Is that a bad idea? Neither she nor I would want to see her go via Bankruptcy. It ruins your credit for at least 10 years. What are the ramifications for years to come should she choose to file bankruptcy? What are your thoughts on my taking over her credit card dept? At $30k, that would take me several years to pay off, to be honest. Thanks again and sorry if I am being a pain. Tom
What I tried to do was assess what could and could not be discharged to allow you and her to decide whether it is worth filing.
I would not advise you to take on any of her debt. You've probably got your own obligations and you should take on this burden. It is great if you want to help her pay down these debts by making payments, buy I would not advise you to transfer the accounts over to you. Also, it's a great idea to close the accounts.
You're right that bankruptcy is a tough decision and it lingers with you for a long time. If she can avoid it, I would certainly advise her to take that direction. If she files bankruptcy, her credit will not be ruined, but it will be severely damage it. She would be getting credit card offers 6 months after she was discharged. However, car loans, house loans, etc. are harder to come by because you're dealing with bigger loans and more risk to the lender.
Feel free to ask any additional questions! Glad to help.
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