Personal Bankruptcy Debt

[alltalk]

Elderly couple (77 yrs/ 75yrs) on fixed income. Credit card debt over 14000 and monthly payments around 700. They are no longer able to pay and do not qualify for bankruptcy.(Filed back in 2002) Creditors have upped their interest on the cards to 27% and are not willing to make a settlement. I read about the "stealth bankruptcy", what are the drawbacks?

 

[Theresagail]

I have never heard of a "Stealth Bankruptcy"-- I do know they changed the laws in 2005. However it just made bankruptcy tougher--- they need to file chapter 13 they need to get in touch of an attorney ASAP-- This is a repay bankruptcy however they will only have to pay back a portion it will be something they can afford. ANd the collectors and interest will have to stop

 

[dee_dub]

I had to google "stealth bankruptcy".

Legally, the big drawback is they're not absolved of their debt.

Practically, I have a hard time fathoming how two 77-year-olds are going to live on the lam - I would imagine much of their income comes from traceable sources (pension, RSP).