This is a hard question, and the answer is "it depends".
Tax professionals regularly refer their clients to me to determine if any tax liabilities can be discharged in Bankruptcy. Here are the general rules
Divorced at a young age, she raised her daughter on her own. Now retired and living in her daughter's home, she has accumulated $16,000 in credit card debt. Try as she may, she has been unable to pay off this debt with her pension and social security.
No two people have the same financial situations, which also means no two people handle their debts the same way either. It's a fact not lost on people in New York where the sudden loss of a job or serious illness or injury could just as easily create a challenging situation here as it could anywhere else in the country.
An elderly couple woried that they would lose their home because the could not affort the co-pays and co-insurance not covered by Medicare.
To care for her eldely mother, she left her city job. Afer her mother died, she was unable to get her job back. She lived off her credit cards, while trying to get work, and made her minimum payments with the little work she did get.