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How Do You Know When It's Time To File?

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yikessue

Junior Member
What is the name of your state (only U.S. law)? OH/MA

We're trying to help out my brother-in-law who has had several serious health problems in the past couple of years. He is still very ill, and doctors say he will be at least another 6 months out of work. He's behind in his rent, car payment, motorcycle payment, owes the IRS, has deferred student loans for his 2 kids, and has no insurance. He lives in Ohio, and we are in MA. We would like to move him here, where we can help care for him, and try to sell the vehicles and reduce his living expenses. He's in the process of applying for Social Security, Medicare, etc. He is divorced, and really has no one local to him to help care for him. I've always believed that bankruptcy is to be avoided if at all possible, but it seems like this might be his only option. We want to nurse him to health so that he can get a fresh start when he is ready to go back to work, but would bankruptcy hurt him in the long run? We are not in any position to pay off large chunks of his debt for him.
 


bigun

Senior Member
I'd be in no hurry to file since he is still ill and will likely have more medical debt that will need to be discharged. If he's on SS, that income can't be garnished. Just don't comingle your funds with his. In some cases back taxes can be disharged if over 3 years old and a return was filed and a few other things. The student loans will likely survive bk.
I'd focus on just getting him well and in a position to return to work. Talk with his kids about the student loans and be sure they understand they need to pay them.
A good bk site where people kick this kind of thing around a lot is Bankruptcy Forum
 

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