Legal Question in Bankruptcy in Massachusetts

Durable Power of Attorney and Bankruptcy Laws

My brother and I would like to file a bankruptcy on behalf of our Dad for whom we have a durable power of attorney. Dad is 87 years old and has been diagnosed with terminal cancer. We are being sued for nursing home fees. Dad owns a property in Massachusetts. Two nursing homes are involved. Neither asked for his pension & social security benefits to contribute to payments. Our choices (as far as we have been told) are to 1. apply for Medicaid. Medicaid would pay the last three months for his care, but we'd be forced to sell his home within 9 months and pay Medicaid almost $200,000 from the proceeds of the house, or 2. take out a loan to cover Medicaid, mortgage, equity loan, and legal fees which rents from the house cannot repay. It seems such ashamed that the house Dad worked so hard for (his pension is about $63 per month; social security approximately $850 per month)is being treated like nothing. If you can give us any advice, we'd be deeply appreciative.


Asked on 5/31/05, 5:26 pm

1 Answer from Attorneys
Barry Levine Law Office of Barry R. Levine

Re: Durable Power of Attorney and Bankruptcy Laws

Your question is really too complex for an answer in this limited space. However, a key issue is whether or not your father could avail himself of the homestead exemption available to debtor's in a Chapter 7. You mention he currently resides in a nursing home. I must assume from your question that title to the real estate is still in his name. However, from what you have posted, he does not appear to be resident in the real estate. Do family members reside there? How much is the real estate worth? Are there any mortgages on it? I would be pleased to meet with you at a mutually convenient time to go over your father's situation in greater depth. Please feel free to contact my office to set up an appointment. Barry

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Answered on 6/01/05, 2:14 pm


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