Legal Question in Bankruptcy in New Jersey

Bankruptcy and POA

i am POA for my 84 yr old mom who is residing in a nursing home now...my name is on her checking and savings accts acting as POA. We are near the end of preparing her for a hearing to get her on Medicaid. We have been spending down her money. We have a little left both in her checking and savings and then Medicaid will pick her up Nov 1. I am filing bankrupty chapter 7 this week...week of oct 10, 2005. I dont want anything to go wrong with getting her on Medicaid and I would like to know if anything will screw up the process. I am specifically concerned with having to declare her account numbers on my petition. Can they do anything as far as freezing her accounts.. It is not my money ..it is hers...why do I have to list her account numbers on my petition. the family does not know i'm filing. Will this be a problem?..Should I be concerned?

Leigh


Asked on 10/10/05, 11:36 pm

1 Answer from Attorneys
John Corbett Corbett Law Firm LLC

Re: Bankruptcy and POA

First, the purpose of declaring the accounts in which you act as a fiduciary (hold money for another) is to avoid later confusion. You will simply have to tell the trustee the situation at the Meeting of Creditors.

Second, when faced with a choice of showing some fact on a bankruptcy petition or not, always opt to show it even if an explanation is needed. The one thing that gets judges and trustees excited is any implication that the petitioner is trying to hide assets.

Third, why are you doing a bankruptcy petition by yourself? A bankruptcy case can usually be completed at no real cost to you. Additionally, we are on the brink of a major change in the law. What you may have heard or read might not be valid next week.

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Answered on 10/11/05, 12:22 am


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