So I think specifically declaring this "schizophrenia" is a bit much. Chris doesn't have the rambling speech (Chris says goofy shit when he speaks because he's dumb, but it's not schizo level disconnect) nor does he have the visual or aural hallucinations*.
Now that being said, there's a big problem in that Chris is not invested in reality like a normal person should be. I think describing Chris' weird bonkers shit here as childlike fantasies is pretty on target. Chris is like a kid except he has no parents to reign him in. No ceiling above him. The sky's the limit with the insane ideas he can express and believe in.
* To come back to the visual/aural hallucinations, I think if he claims he has them, he's lying. I think the most he has as far that goes is wishful thinking. Chris thinks he can make paper move, but he's not balsy enough to think he can jump out of a building and fly (for example).
In fact, I think if you worded it carefully, you could probably even get Chris to even stop pretending to see/hear his imaginary friends, by telling Chris he's inches away from involuntary commitment in a mental hospital for his insanity. I do think (again, with careful wording) Chris would stop pretending even to himself to hear his imaginary characters. Now, I think he'd still be into woo, like crystal healing and stupid shit like that, but again, he'd tone down the more bonkers claims.
However, none of this keeps Chris from being a danger to himself or others. It would just require a tense situation for him to play pretend a bit too aggressively, and (say) get his ass beat by cops.
Like when he curse-ye-ha-me-ha'd Mary Lee Walsh. Or more worryingly, like people have mentioned, the taint wound. (Though I don't believe he was sober when that happened.)
I think there's definitely a risk with Chris essentially "playing chicken" with reality. I don't think he does the craziest shit he wishes he could (and like how he didn't cut his taint wound sober) because he doesn't actually believe it as much as he wants to believe it. This writeup? It's Chris desperately trying to convince everyone, including himself, that the magic shit is real.
But again, it doesn't need to be too terribly sincere of a belief for it to get him into trouble.
I think Chris is stressed about life, and the lack of control he has over his life. Chris isn't in a position to improve his life, like telling Barb to fuck off, so he tries to control his life with magic.
Reincarnation really fried his brain. 
