At what point should a relative bail out another from a financial mess? I have a relative who needs to declare bankruptcy but doesn't have the $$$ to do it. Creditors are hounding them, taking them to court and I feel really bad about the situation they are in. If I loaned them the money, they probably would never repay it. This person is also not working. Thoughts?

I probably wouldn't do it unless they were part of my immediate family. Why doesn't anyone else in your fam pitch in to cover the costs? Like a pool of money amongst family members, in equal sums of money?

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You must be the change you want to see in the world ~ Gandhi

Only do it if you can afford to donate that money to your relative and if you are close and care about the relative. If it's a sponger I'd say NO.

For me I suppose it would depend on the situation. Why do you feel that you have to bail them out? Is the bankruptcy from something unavoidable (ie; medical bills) or was it just careless spending and they got in over their heads? Why is this person not working? Are they physically unable to? There are just so many things to consider before I could even begin to decide to do it or not.

Family, friends and money just don't mix. If you do decide to help them and they don't pay you back, will you be okay with that?

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I Wouldn't Do It for anyone. UNLESS I Had the Money and It was To help Someone in a Dire Situation , I.e. Medical Issues , Job loss...

I Wouldn't expect anyone to Help us either.


Life is Too expensive and You Never ever Know whats Around the Corner.

Save your Money so You don't end up in their Shoes.

I personaly won't because if they aren't working, chances are they kept up their spending habits even without an income. Whether their not working due to illness, job lay offs or just not wanting to, I bet that they probably relied on credit cards and other cards to live on.

I sure they will find some way to come up with the money, without you being out of yours.

I would be careful about loaning any money if somebody claims bankruptcy. First of all they can write it off secondly if they do claim they paid you back during the bankruptcy you would have to pay it back to the courts. I would check into the bankruptcy laws if I were you.

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Mom to Kellan 12-16-2000
Brooklyn 12-27-2005
Nolan 10-15-2007
Wife to Russell 10-14-2005

I don't believe in bankruptsy but if I were in your shoes and I felt the need to help then I would just give the money, no strings attached. Never loan money to family. Of course, in my opinion they made the bills and should have to pay them or get hounded by their creditors. Helping may be more like enabling them because they haven't suffered the consequences of their actions. Even if it were my brothers I think I would just tell them that they made their bed so they have to lie in it.

I would not. Bailing them out is not a life lesson for them at all.

If they are truely that financially distraught that they cannot pay the filing fee for a bankruptcy it could be waived upon application. You can still filed a pro se bankruptcy, although it is VERY difficult to know all the ins and outs. Check out the website for their local bankruptcy court and get informed.

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Grace

Wife to Stoney

Mommy of Sarah (8.5), Hannah (7), and John(5)

I wouldn't pay for somebody else's mistakes with money, that may sound cold, but you didn't create the mess. If it was due to medical reasons, there are agencies that can help with that.

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Count your many Blessings