I concur on the POR-15 product use to encapsulate and stop the spread of the rust. Getting as much of the rust removed, first, as mentioned. There seem to be other "rust encapsulator" paints available, but POR-15 was the first one I saw advertised in the 1980s, so it has been around the longest. When done, some spray paint to spiff things up.
Take care,
CBODY67
Generally I treat rust as people have discussed here, however, I'm wondering if what is often called " Rust Converter" is used by members?
It is essentially a phosphoric acid solution that is applied onto lightly contaminated areas of rust before any filling or painting is commenced.
With situations like this, which is very similar to that existing in my NY er when I bought her, I used phosphoric acid, and therefore all rust areas aren't removed, just bulk removal of flaky/loose corrosion and debris first, then wash with degreaser and water, before an overnight dry. Once dry the acid is liberally painted onto obvious rust and areas that are hard to access. A white finish after 8 hours or so indicates chemical change from iron oxide to some type s of iron phosphate.
These iron phosphates are very inert, apparently.
Then undercoat and fill/fibreglass the repair as you wish.
I've found that this chemical change from iron oxide ( rust basically) to iron phosphates makes the area stable for years, sometimes more than decades.
The only drawback to the product is that if you're not careful applying it, any phosphoric acid that gets onto good paintwork damages it very quickly(obviously), so masking/ coverage is essential around the work area.