Bankruptcy Question Please help

[Anonymous]

Hello All. 

My sister has recently lost her job (well a few months ago) she have a bunch of credit cards that she's been paying on every month but they seem to be going nowhere. she also have a car lease that she don't want to get rid of. My question is should she file bankruptcy? If so which chapter s best for her?

She's currently in a lot of debt (I mean a lot) and her making minimum payments will take her a life time to pay.

Also, do she hae to give up her lease?

PS This post is for good advice please don't comment if your gonna start blaming her for something that can happen to anybody. Thanks

[Anonymous]

I'm sorry your sister is having hard times. In regards to your question, we will not be able to give you an answer specific to her situation without additional information.

For example, does she currently have health insurance? If not, then it may make sense for her to wait until she has a job again and is covered by health insurance. You don't want her to file bankruptcy while she's unemployed, and then incur a large medical expense while she has no health insurance, and not be able to include that in the bankruptcy because she already filed. Also, bankruptcy is a tool to protect a person from predators.If she has no creditors trying to Sue her or Levy her bank account, the bankruptcy may not be necessary.Depending on how much she will make when she resumes employment, she may be able to satisfy her obligations with a repayment plan or a debt consolidation loan.

[Anonymous]

On the other hand, let's say she is covered by health insurance and will be filing bankruptcy no matter what period In that case, it would make sense for her to stop paying her credit cards and instead use that money to pay and a bankruptcy attorney. She might want to meet with a few bankruptcy attorneys now and determine what her best course of action is, and if she is eligible to file a chapter 7 bankruptcy.