Filing A Bankruptcy Case for Another Person 

Filing for bankruptcy is a meticulous and complicated process that can be quite overwhelming for one person to undertake. Imagine now if the said individual is incapable of handling financial situations. These are the instances when filing bankruptcy with a power of attorney for another person comes in. Before considering this method, it is best to understand it first with the help of a bankruptcy attorney. 

Filing bankruptcy using a power of attorney for another person is a common practice, especially since there are family members that are concerned with a relative’s financial situation. In other cases, if the person filing for bankruptcy is elderly or incapacitated, filing with a power of attorney is the step to take so that bankruptcy can be filed without the presence of the debtor. 

If you are in need of assistance regarding filing bankruptcy using power of attorney Surprise AZ has a reputable law firm named Dodds Law Firm that houses a bankruptcy attorney. An attorney can help you with bankruptcy forms, credit counseling, bankruptcy protection, and more. The attorneys also aid in family law and wills and trusts matters. Schedule an appointment with a bankruptcy attorney who is well-versed in the bankruptcy process right now.

Filing For Bankruptcy Using Power of Attorney

filing bankruptcy using power of attorneyIf you wish to be in charge of financial matters on behalf of another individual who may be incapacitated, know that there is an option to use a power of attorney. A power of attorney is the document needed by the designated party to make decisions for another which can be drawn up during hospitalization.  An attorney can also help with the bankruptcy process and provide legal advice regarding your next step. From exemptions to bankruptcy relief, an attorney can guide you every step of the way.

If you are looking to employ a power of attorney for chapter 7 bankruptcy or chapter 13 bankruptcy, enlist the assistance of a Surprise, AZ bankruptcy attorney to help walk you through the process and help you understand terms that can be complicated as well as represent you in bankruptcy court. 

What is the Power of Attorney?

To reiterate, a power of attorney is a document that gives one the power to act on behalf of another in moments of incapacity. A power of attorney enables the designated individual to become an attorney in fact or an agent. This will give the entrusted individual the ability to make decisions for the debtor should they be unable to. 

In a bankruptcy case, the power of attorney gives the individual the ability to make decisions regarding an incapacitated person’s financial situation, from income, to medical bills, to payments. They can also file for bankruptcy and have control over exemptions.

What are the Different Types of Powers of Attorney?

The two types of power of attorney are the medical and financial power of attorney. The health care power of attorney involves the attorney-in-fact to make health-related decisions for their incapacitated loved one. The health care power of attorney is also known as health care proxy.

The financial POA enables the attorney-in-fact to make financial decisions such as managing or taking care of small businesses, filing tax returns, and managing investment accounts. Financial POA provide the attorney in fact with power over accounts, the credit card, and anything related to finances.

If you have been designated as a attorney-in-fact and are overwhelmed with your tasks at hand, get in touch with an experienced attorney from Dodds Law Firm. An attorney can help you make an informed decision before executing any plans stated in the power of attorney.

How Do I Set Up a Power of Attorney?

Setting up a power of attorney requires you to buy or download a form that you can eventually print. Since it is an important document, it is required by some states that the power of attorney be notarized. Be informed that there is no standard POA form in all states.

Here are some generally quick steps on how to file a power of attorney:

Have it In Writing. Some states accept oral grants but it isn’t as reliable as print. Written POAs help avoid confusion.

Use the Proper Format. Formats vary from state to state as there is no one true outline for a power of attorney. Get in touch with an experienced attorney to help you with this.

Identify the Parties Involved. The principal is the person granting the power of attorney and the attorney in fact is the one designated to carry out the wishes.

Delegate Powers. The principal has the option to broaden or narrow the scope of powers.

Specify Durability. The POA terminates the moment the principal becomes incapacitated. The only way power is retained is if the agent specifices that it is for a lifetime.

Notarize. Most states require notarization of a power of attorney.

Record and File. While recording isn’t a requirement, some estate planners consider it a common practice that needs to be done. As for filing, comply with your state’s requirements to have it filed in court.

What is the Difference Between Limited and Durable Power of Attorney?

Many get confused between the limited and durable powers of attorney. In the limited power of attorney, there is permission granted to a designated party to act and make decisions on behalf of another person to execute certain lawful  tasks that are in the document, such as filing for bankruptcy and appearing in bankruptcy court. In a durable power of attorney, this document will be effective if the signee becomes incapacitated or disabled, which could prevent them from revoking a power of attorney. 

If you are having trouble with bankruptcy paperwork, wage garnishment, or anything related to bankruptcy, know that the best solution to seek assistance from an attorney who can help you in filing bankruptcy using power of attorney in Surprise, AZ. The attorney’s extensive experience in the field is one of your best assets in this case.

Power of Attorney in Bankruptcy

By this time, if you’ve grown familiar with a power of attorney, it’s time to ask if one can employ a power of attorney in a bankruptcy situation? Should you have a loved one who becomes disabled and you are designated to care for these matters, is it possible? 

To answer, once a limited power of attorney is executed, the attorney in fact can carry out the tasks stated in the document, such as filing, selling nonexempt property, appearing in bankruptcy court, and more. The person named in the power of attorney can also have control of the assets if the document says so. If filing of bankruptcy is stated in the document, then the attorney in fact has the right to file for it on behalf of the incapacitated individual. 

How Does Filing Bankruptcy Using Power of Attorney Work?

An individual with a power of attorney can file bankruptcy for another person. A power of attorney must indicate that the attorney in fact can file bankruptcy, go to bankruptcy courts for hearings, and undertake other matters related to the bankruptcy case.

Have you been designated as an attorney in fact for an incapacitated or disabled loved one? Are you currently handling their bankruptcy situation? If all of this gets too complicated, know that you can get in touch with a Surprise, AZ bankruptcy lawyer from the law office. A bankruptcy lawyer can help you file, provide legal counsel regarding bankruptcy law, and represent you when filing bankruptcy using power of attorney.

How is an Attorney-in -Fact Selected?

When it comes to choosing an attorney-in-fact, many factors come into play. Of course, the individual would want to entrust all their matters to an individual they feel is trustworthy and responsible enough to carry out all those deeds. Again, many factors come into play, but these are the most common: 

  • Location- the individual often selects somebody who is nearby for practical purposes-to make task execution easier. 
  • Marriage- it is often automatic that when you are married, the spouse becomes the agent-in-fact. 
  • Multiple People- sometimes, multiple people are selected in order to undertake the tasks, even if it is recommended to name just one to avoid complications. Nontheless, this is also a good idea in case the individual needs a backup agent. 

If you have a health care power of attorney, however, there are plenty of other factors to consider, including who can and cannot serve as your agent. Get in touch with a lawyer from a Surprise, AZ law office to help you sort bankruptcy matters out.

Where Does A Power of Attorney Begin and End?

When you have written up a durable financial power of attorney, it goes into effect immediately after signing, witnessing, and notarizing. The agent can be instructed not to use the POA until you are disabled or incapacitated. As for its end, the moment you decide to revoke the document or upon your death is where it stops. Other circumstances include ex-spouse as agent or divorce.

If you are appointed as an agent-in-fact and your loved one is going through bankruptcy, be it chapter 7 or chapter 13, don’t go through the process alone. Before you file, seek legal advice from a Surprise, AZ bankruptcy attorney who can walk you through the process and ensure an outcome that is favorable to all. 

Call our Surprise, AZ Bankruptcy Attorney

Are you currently filing bankruptcy using power of attorney? Are there plenty of terms you currently don’t understand regarding bankruptcy filing? Don’t suffer through it alone. Get in touch with a Surprise, AZ bankruptcy attorney from Dodds Law Firm, PLC. The firm, which has been servicing clients for two decades, houses a bankruptcy lawyer that is capable of reviewing your loved one’s case and taking the necessary action to ensure the best outcome possible. 

An attorney can help educate you regarding bankruptcy basics, inform you of debt and help you deal with creditors, appear with you in bankruptcy court and offer quality representation. Schedule an appointment with a seasoned Surprise, AZ bankruptcy attorney from Dodds Law Firm, PLC  right now.