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What if the Agent of the POA needs to file bankruptcy?

My mother was admitted to the hospital with a broken shoulder and will be in need of rehab at a nursing home and possibly, long term stay in the Dementia unit. My name is on the deed of the house, I am her Agent as Durable POA, along with medical POA. I have lived in this house for 13 years w my mom but in order for me to keep it financially, I would need to file bankruptcy to get rid of my credit card debt. since my mother's health has deteriorated my credit score has dropped from 745 to only in the 'fair' range. It effected my ability to work certain shifts and continue with school in the health field. I'm currently a CNA..

So I am wondering that if I file bankruptcy to get rid of my credit card debt, how will that effect anything in her name? My name is on her checking but only to give me permission to write checks. I have no money in her checking and never have. I have my own accounts.
Status: Open    Jan 24, 2017 - 07:33 AM

Elder Law

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Jan 25, 2017 - 12:37 PM

I am so sorry to hear that you have had to put your life on hold to be a caregiver. Being a full-time caregiver is one of the toughest jobs out there, and I'm sure your mother is very grateful you have been willing to help her.

Assets solely in your mother's name should not be affected by your credit score or potential bankruptcy. Please be sure that when you are acting in your role as POA that you are signing documents as "Mother by Daughter, POA." This will ensure that your mother is responsible for her own assets and liabilities, and that yours are kept separately.

You will want the advice of your bankruptcy attorney as to the impact of a bankruptcy on jointly held assets. Although I deal with elder law issues daily, I am not well versed in bankruptcy law and hesitate to provide you an answer to this question. However, somebody who practices in this field of law often should be able to provide further advice.

Best of luck to you and thank you for the hard work you are doing to take care of your mother. She's lucky to have you.
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By stevef15 on Feb 04, 2017 - 03:24 PM | Like (0)  |  Report

When I had to file bankruptcy my mother had to take me off of her beneficiary bank papers, as per my attorneys advice. She banked at Wells Fargo and so did I at the time...totally separate everything except for my SS # being cross referenced may have put a hold on her bank accounts, cd's, etc. until my bankruptcy was dismissed. That was 10 years ago and I also was advised to change banks, because many banks, especially Wells Fargo, did that. Good luck to you...dementia is so difficult!

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