Finance House

What is the name of your state? IL

My grandparents are in a situation where they might need to file for bankruptcy. They have credit card debt of around $35,000. Most of this is from helping out other family members who were supposed to be paying each month for them. Up until 5 months ago, I was paying their credit card bills, the minimums which was a total of $1000 per month. At that point I began having financial troubles so I could not pay anymore. It is not possible for them to pay any of this because they are living on a fixed income from Social Security. That is their only source of income. They are living in government subsidized housing paying rent of $500 per month. They have one asset, their only car. Nothing else.

Now after researching online a little bit, I've read they do not need to file for bankruptcy and nothing can happen to them because they are living on fixed income and no assets. Is this true?

I have no problem having them file for Chapter 7, but I am afraid it will affect their housing, car, and even their Social Security. Any information on this?

Summary:
CC Debt: $35,000
Social Security Income: $1000 per month ($500 each)
Rent: (Government Subsidized Housing) $500 per month
Car: Paid off (worth about $5000 now)

File for Chapter 7 or do nothing?

Thanks.What is the name of your state?