[bccs]

My mother in law is elderly, in poor health and has a fixed income. She has a loan on her trailer. The trailer is in a trailer park. My sister in law has power of atty and wants to move her to an assisted living facility. If that should happen, what is to be done about the money owed on the trailer? They live in Pennsylvania. She can try and sell it, but will never get what's owed... about $18k. My sister in law doesn't have the money to pay off the loan. Plus my mother in law has other debts as well. Would filing for bankruptcy be a viable alternative to escape the debt? Would the money owed for her other debts fall on my sister in law, since she has power of atty. Any information is apprciated. Thank You

[ScottGem]

Power of Attorney only empowers a person to act as the legal representative fore another person. It does not make them responsible for that person's debts.

As for the mobile home, you might try to rent it or even just get someone to take over the payments.

I doubt if bankruptcy is necessary (and it might affect getting into an assisted living center), but your sis can consult a bankruptcy atty on mom's behalf.

[excon]

Hello b:

No, the power of attorney doesn't mean she'll inherit the debts. In fact, if her fixed income is SS, she's in effect, judgment proof. It has the same effect as bankruptcy, but doesn't cost anything. Social Security can't be garnished.

She should just move and let the trailer be repoed and let the other bills go as well.

I don't ordinarily advocate that someone not pay their bills, but you can't get blood from a stone. She's NOT going back to work, and they're not going to get their money no matter what. Plus, a bankruptcy isn't going to ruin her credit worse than not paying her bills will. She doesn't need good credit now anyway.

excon