Can a power of attorney be used to file a bankruptcy


Although not perfectly clear, it appears that a power of attorney can be used to file bankruptcy for someone. Listen as Attorneys Tom Olsen and Jim Monroe explain!


Stephen: My father, he's a senior he's a gentleman in his seventies. He had filed for bankruptcy. He had gotten into a little bit of financial issues as far as credit cards and some home equity loans that he took out and he's under fixed income. The challenge that I'm having I'm trying to fix them right now is I'm having a hard time communicating with him as to -- He's making payments to his counsel as far as trying to sending out the letters and dealing with credit card companies. I've also explained to him that he doesn't need to take the online course. He really not of the mental mind per say to be able to let alone be able to navigate through a computer or anything like that.

So I'm just trying to figure out if there's a way that I could try to convince him by maybe setting up some type of a power of attorney where maybe I can intercede or if there's anything that can be done on the side of him being a senior really not having even the mental capacity to really complete or really understand what he's doing or what further options I could take.

Attorney Tom Olsen: First of all Jim, I want to ask you, that's a question I've never been asked before. Could somebody who has the power of attorney for somebody file bankruptcy documents on their behalf?

Attorney Jim Monroe: They're going to change the local rule regarding that pretty soon. We have from time to time a rash of people like this and the answer is, right now if you have a special power of attorney that somebody can -- specifically says in the power of attorney that you can file a bankruptcy and you convince the court. Now, one of the things that you might have a problem with is that the person that is assigning this power of attorney, are they confident or not? If they're not confident, then that's not a good power of attorney.

On the other hand, you can go and get a legal guardianship set up for this person and if the court generally would easily sign off on allowing the guardian to file a bankruptcy on behalf of that individual. But in the middle district of Florida, there's going to be a new rule out pretty soon that outlines when the court can accept these powers of attorney or guardianship.