Borrowing from relatives and being unable to pay them back
is a big mistake people make when desperate to pay bills. If someone can't pay the original loans, medical bills, credit cards,
car or house payment then it shouldn't be a surprise when they can't repay their loved ones. If this is money that the family
member needed, now they are in the middle of the problem.
Another bad mistakes is having a friend or family member borrow money for you that neither you nor they
can repay. If the family member took a loan on their house, then they now face loss of their home trying to help someone
pay bills they couldn't afford to pay themselves.
Sometimes people end up hurting those they love the most.
Bankruptcy can help people get control of their own finances before they pull their friends or family into the middle of their financial
problems. Chapter 7 bankruptcy might be able to make unsecured (no collateral) bills like credit cards, loans, payday loans,
and medical bills go away. Chapter 13 can also eliminate unsecured debts, or it can set up an affordable repayment plan
for those debts. Chapter 13 can also stop repossessions or foreclosures, and give people time to catch up on their debts.
Best of all, bankruptcy may provide a solution that leaves friends and relatives out of the picture.