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Bankruptcy
A cousin of mine is bipolar and has lapses of psychosis where his perception of reality is extremely skewed. He will think he has a Ferrari and that someone stole it from him for example.
He has no savings but has a credit card and has been maxing it out and only making the minimum payment if that. As of now he's at about $3500 in debt. My aunt helped him pay off his card twice in the past and is considering doing it for a third time but I suggested that filing for bankruptcy may be an option. He's not working right now since he was just admitted to the hospital for his mental disorder.. his psychosis is so extreme that I don't think he has any concept of money management or debt.
From what I understand if he were to file for bankruptcy they would sell his assets - what does this include? He has a phone, an ipad, some headphones and clothes so will they typically take everything?
What are the negatives of this? I understand that his credit will be shit but I think that would be fine since he shouldn't borrow any money or have a credit card in the first place.
$3500 isn't a huge sum but this would be his third time so it's not a small burden for a single mom.
Anyone have experience with bankruptcy?
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