Welcome to the forums.
1. I hope you learn your lesson about using trackings for such high dollar item from now on.
2. Yes, they will absolutely send you to collection and will not stop harassing your sister.
3. I don't know why you closed your PP account, but okay.
4. Yes, they'll tag your sister's credit. So this is lesson #2 that you should use your own account from now on to prevent damaged to others close to you.
I'd assume she has her SSN with PP correct? Because this is how they'll get you and her.
This is the situation where eB / PP will be very vicious, so you can't trust them as they'll only cover themselves, as you should have done in the first place by buying that tracking.
But even so, anything international is usually not covered by PP.
I'm sure other members will have more advice, but here is mine for now.
Good luck!~
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