Adult children calling to inquire about bankruptcy on behalf of their elderly parents is a common occurrence in my practice. Several issues are usually important in this situation. If you are considering inquiring about bankruptcy on behalf of your elderly parents, here are some things to keep in mind.
The first issue will be the mental competency of your parent. This can vary greatly from case to case. Some adult children reach out on behalf of parents who are completely competent. They may be reaching out as a courtesy or to get information for their parents. But, at the end of the day the parent is capable of answering the questions themselves. In other cases, the parent is not mentally competent to answer the questions. In these situations it will be important for the adult child to get a power of attorney over their parents affairs. This would allow them to testify on behalf of the parent in any bankruptcy proceeding. In some situations, the parent may have diminishing, but not complete loss of mental capacities. It will be important for the bankruptcy attorney to speak with a parent to get a feel for whether or not they can understand the situation.
Another scenario that will be important to keep in mind is when the parent owns a home. Bankruptcy law limits the amount of equity to be exempted in a home. If you are calling on behalf of your parent, you should know what their home is realistically worth on the market, and any liens against the home such as mortgages or taxes. This will help the bankruptcy the attorney determine whether or not they will be able to file.
A final, unfortunate, situation that I am starting to see more often of is elderly parents who have been scammed. The scams vary in degree and method, but they often lead to drained bank accounts and maxed out credit cards. In these situations it is best for the adult child to help the elderly parent file a police report. Unfortunately, this will not usually lead to an arrest. However, it may be useful in ensuring that you will get a bankruptcy discharge, or in some cases forgiveness of any deaths resulting from the scam. It is also important to take control of the parents finances in these situations so that the situation does not repeat itself.
If you have questions about your elderly parent filing bankruptcy call us at 412-414-9366 to set up a free consultation. I would be happy to discuss their situation and see if bankruptcy can help.