Power of attorney Do I have to pay for this ?

Question

I have power of attorney of both my parents now .. before by brother had it and he passed (in 2006 ) away but before he passed he went and made a loan against my mother home that was payed for and didn't pay the note and lost it and now since he is gone his wife has let his house go and now the creditor are calling me about credit card bills they made in my mothers name and my mother shes living with me and I'm supporting her because the state of louisiana only wants to give her $308 a month I have called a lawyer and he told me don't worry about it and just let it go ! Do i need to get a credit report call the police what ?

Answer 1

You say that your Brother made the loan against your Mothers House, that was owned outright.

She may only get $308 monthly from the state but she is a homeowner and therefore has assets.

The loan was taken against the house so if the has is sold the loan would have to be repaid before any equity is calculated.

Answer 2

If you have power of attorney over your mother's finances, you are not personal responsible for any of her debts.  

If that $308/month she receives is SSI, creditors can't garnish it.  Since the house was forclosed, your mother has no assets and that makes her pretty much judgment proof.

Don't pay anything to those debts your brother created.  If they call you trying to collect, send them a certified, return reciept letter telling them to cease and desist all contact.  You might even include that your now deceased brother mismanaged your mother's finances and she is now without assets and has no money to pay.  

Even if a creditor actually sues, there simply isn't anything for them to attach.   Take the lawyer's advice and just let it go.

Answer 3

You've got two issues.

1)  The current creditors who think your mother borrowed all this money and expect her to pay.  If she has no assets, the most they can do is try to attach the $308/month.  The fact that she is living with you doesn't make these your debts.  If she does have assets, that's a different matter.

2)  The issue with your brother.  You don't state if the money he got from mortgaging your mother's house or using her credit was used for her benefit or not.  If it was for her benefit, yes it was poor management of her affairs.  If he took the money for his benefit, he stole it.  You can file a police report and sue his estate (possibly getting the creditors to leave your mom alone), but based on your description, all of the money was spent and nothing is left.