Mother's debt

[Forest Hill]

What is the name of your state?Georgia:
Now that my Mother is ill ( early stages of Alzheimers) and is not coherent enough to make financial decisions, I now have to handle her financial affairs.
She has medical expense along with other household expenses and from what I can see, she can no longer make her monthly payments.
No payments have been made on the credit cards for several months, and each creditor keeps asking me for a copy of my power of attorney. If I do that, it seems they could then harrass me? Would this be correct?

However, on the other hand, if I do provide the power of attorney, could I not ask that I not be bothered in regard to her debt, as the debt was accummulated prior to the power of attorney?

What is the best way to handle the credit card companies/and-or collection agencies when the debtor is no longer able to handle their affairs?

She only has social security income, no assets.

It would be very expensive to hire a BK atty and she would not be able to handle the procedure for bankruptcy in her state of confusion at this time.
Just a mess??!!!

 

[Debt Guy]

The power of attorney granted to you does not make you liable for your mother's debts.

The reason the creditors keep asking for it probably relates more to privacy laws. They are not allowed to speak to a 3rd party without consent of your mother. This power of attorney allows you to speak on her behalf and allows them to speak to you.

So far as the creditors are concerned, I would just tell them the facts and say that your mother has only Social Security as income and no assets. I would not send them any money. They may decide to sue your mother but she is clearly judgment proof and they cannot garnish her Social Security.

Your mother does not need to file bankruptcy.

As to you being harrassed for payment -- well, yes and no and sorta.

If you provide them the power of attorney, you will get phone calls. You can ignore the calls or just hang up.

If you don't provide the power of attorney, you may still get phone calls but they are not supposed to talk about your mothers affairs to you. You would have the right to tell them to stop calling you although it is not easy to stop the calls. Most people just have their phone number changed.

Make the decision you feel most comfortable with. You will not assume any personal liability for your mother's debts because of the power of attorney.

Personally, since your mother is not likely to recover and she has no ability to pay this debt, I would just keep the power of attorney in my pocket and tell them to stop calling.

I went through this with my grandmother. There is a special blessing on you for the care you give at this time.