
Quoting
Lawler
Should someone file for bankruptcy if they have no assets (no home, old car, no savings) and their debt is all credit card debt, which is now largely non-dischargeable in bankruptcy. Also, debtor is unemployed.
Credit card debt is still very easily dicharged in a BK filing. In the situation you describe above they could wipe it all out with a possible Ch.7 filing. Keep in mind though unless they file Pro Se' it will cost $$$$ for an attorney. At a minimum Filing Fees would be paid
This is in a state with a 4-year statute of limitations on consumer debt and it has been several years without the credit cards filing suit. Pretty sure the debt has been turned over to collection agencies several times over by now. In fact, the 4 years is about to run out.
Even if the debts go past the SOL they can and will still try to collect.
What are the chances that the collection agencies/credit cards will file lawsuits right before the SOL expires if the debtor is still unemployed at that time and has no assets to seize. Will they even waste their money on attorney fees to file suit? What does the debtor have to gain by filing bankruptcy?