Q: can debt I am cosigned on be included in my bankruptcy if I have a financial POA for my mom
My Mom is incapable of handling her debt . Can I file BR and include her debt I am cosigned on ?
A: You should be able to file a bankruptcy case for your mother under the authority of a suitable power of attorney in the instance where she does not have the mental capacity to participate and handle her own filing. The U.S. Trustee, which is the branch of the Federal Government that monitors bankruptcy cases, will general allow this as long as the Power of Attorney has language sufficient to authorize filing a bankruptcy. However, the fact that your mother might receive a discharge does not relieve you from your responsibility for co-signed debts. This is the reason that creditors ask for a co-signor. The only way that you will be relieved from liability would be for the debt to be paid, or if you file your own case and receive a discharge.
A: Under penalty of perjury, the official bankruptcy schedules require you to identify all claims against you or your property interests, whether you believe that the claims are valid or not. Certainly, that broad requirement would include a legal obligation upon which you are directly obligated, and also as a guarantor or co-signer.
The applicable laws in your state most probably prohibit you from doing anything with respect to your mother's assets that is detrimental to her. Ask your bankruptcy attorney how your bankruptcy may fit into those POA laws and rules.
However, just on the face of it, because you are prohibited under most POA laws from commingling her assets and funds with your own, I think you're probably in the clear.
A: Assuming a successful chapter 7 bankruptcy, the debt you are cosigned on will no longer be collectible as to you. This debt will still be collectible against the primary signor for the debt.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.