My sister has been on SSI ( social security income ) due to a disability for a few years. She got 3judgmentsered judgments against her from creditors ( about $ 10,000), she has no way to pay now. I advised her to file chapter 7 bankruptcy to wipe out this debt, Is it legal to file for chapter 7 bankruptcy in this case ?
Thanks for help
Your sister can file for bankruptcy but the regulations require spending a year in credit counseling which you pay for, then the actual bankruptcy costs are for the lawyer and around $300 for court costs.
A much easier way in her situation would be to send all her creditors a letter stating she is judgment-proof because she is on SSI and has no assets, and quote the section of the Fair Debt Collection Act in the letter. That will probably end the problem.
Before she gets sued for these debts I suggest sending the letters to each creditor. You can find this form letter on line at several websites.
