She owes a lot of bills and softer the nursing home gets their share of her social security there is nothing left to pay them with. The legal department of one of them called and said they they needed her POA so the bill will get paid. Found out that she has no paid them in a few months so they are behind. There is not enough money left to pay any of them. Can they hold be responsible to pay them? I'm on disability myself and can't afford any extra bills. Do I need to get an attorney to protect myself?
I was a Collector for private companies. The FTC rules for us were not as strict as the rules for private Collection Agencies. These agencies have bought Moms debts. As such, they have no back up just an amount. The collector works on commission so he will say anything to get the money. Not all legal. Now utilities are a different thing. These can be turned off for nonpayment. So, if you are living with Mom, and the utilities are behind, then you could set up payment plans until you are caught up. Since you are disabled, they may be able to help with discounts. If you don't live with Mom, then you may just need to turn everything off at her home.
If Mom has money in her account after the spend down, this cannot be used for bills either. It can only be used on her personnally.
Now. Basically a Financial POA is the one who is responsibly for paying the bills when the person who appointed them cannot handle this any more. NEVER comingle YOUR money with their money. Your money has NOTHING to do with them or their bills. Absolutely NOTHING. Be certain that anything you sign FOR them as their POA you sign using both your names. Let us say you are Joanie and they are Jane Doe. You sign all contracts and bills as Jane Doe by Joanie as POA, or by Joanie under POA. You are acting for them because they cannot and you are acting with their funds. DO NOT GIVE ANY OTHER ENTITY POWER OF ATTORNEY TO GET THE MONEY. In fact, you can give them legal rights to withdraw fees from the accounts, but if there are old bills they could empty said account, so do not do so.
If bills come simply send a letter signing yourself as POA saying there are currently no funds to pay these bills. If there ARE funds to pay bills then you are beholden to pay them for the person you are power of attorney for.
I do think that you have not enough knowledge, so were I you I would go to an Elder Law Attorney, perhaps the one who drew up the papers, or another, and say you do not fully understand your duties.
You should also be keeping folders with all bills, copies of all checks to pay them, letters from entities or creditors. You should be keeping an account book of what comes in each month and what is paid out and a copy should go to the person whose finances you manage if they can understand it.
This is not a things to take on lightly. If you are not up to it then someone else, even the state can be assigned to handle it. You can resign. But do not do it unless and until you understand it fully and can do it well. A mistake in signing COULD make you liable for bills. So pay for that attorney and it can be paid from the account of the person you are managing, and an hour of time will give you a lot of information about what you need to do, what you are taking on, and how to do it.