Parent in long term skilled nursing care in California. Is on Medi-care and Medi-cal. All of social security goes for the care except $35.00 which is for the personal needs. Parent has credit card debt and I am POA. I have contacted credit card companies letting them know the situation & they have received the POA. No money or assets to pay. Question: when debt is sent to collection agency then they too want copy of POA. On one debit it went to two different agencies. Do you have to keep sending POA's when the debt gets passed on to someone else? What can I do? I know I'm not responsible for the debt. I've made an offer to settle but not accepted. How to handle when the debt keeps getting sent to different agencies?
The debt is not yours. Make that your mantra.
As POA you have a fiduciary duty on their finances. And as they are on a federal at need program (Medicaid), your fiduciary is to make sure their copay or SOC (share of cost) goes to the NH first & foremost due to Medicaid compliance. This last sentence too becomes your mantra to any creditors who contacts you.
Parents income is SS and SS is fully protected income from creditors except for the super creditors (IRS & state governmental entities). The collections know that but will press, yell, wheedle that it’s your debt, your responsibility or imply as that as you sent them the POA you assigned yourself to be responsible. They will likely threatened and imply liens placed....yada yada.... You probably should Send a certified letter with the return registered card (duet from uspo under $10) that states they are in a facility under federally required compliance for income & assets and as such defaulting on all debt & You are not responsible for any of this debt.
You kinda need to do this letter each time a new debt collections buys the debt and seeks payment. It could take a couple of years to cycle out..... a real butt-rash.
The only fallout will be when the OC (original creditor) does a 1099-C cancellation of debt who whatever the total a,property not of the debt, interest, fees etc tallies up to. 1009-c will come to whatever last address the OC ( like Macy’s, CapOne) has on file for folks in January for the year following the year written off. If they don’t get 1099-Cs by Feb on this year (2018) then it’s not getting written off till 2018 tax year, so you deal with 1099-c in 2019 tax filing. Post back on A.C. when that happens as folks will have suggestions as how to deal with.