I have often seen people worried about their elderly parents who are buried in debt. Usually it is clear that the parents are collection proof. But, they will still be subject to dunning calls, court hearings, judgements, and liens on assets, and a lot of stress from worry.
So, my question is...can a POA file Chapter 7 on behalf of their parents?
There is no tax ramifications from chapter 7...any debt discharged is free of taxes on the discharged amount.
Typically, the parents will lose the house in chapter 7...but if they are already in a NH, and the children are left with the house being just a burden, (taxes, utilities, maintenance) why not have bankruptcy court take it? One way or another the house will be lost...if not BK, then to Medicaid later..or local property tax lien and sale for unpaid property taxes.
Seems most people here want to keep the house though but for those who do not, then chapter may be a smart thing to do.
But what about the required credit counseling? The POA can’t take the counseling courses on behalf of the person they are POA for.
I am sure a BK attorney would know, or be able to ask the district trustee.
This might be best for a lawyer that is well versed in Elder Law not just a lawyer that knows bankruptcy law.
a Bk on the credit report of a senior in a NH is not going to have the slightest effect on the seniors’ life.
However, if no one is living in the home selling it may be the best way to go as others here have stated.
I was advise by an Elderly and a Bankruptcy lawyer. Perhaps it is best to speak to these types of lawyers as well.
Best of luck!