Power of Attorney and financial liability
I have Power of Attorney for a relative who recently entered a rehab facility for some years due to severe addiction. There are bank debts and credit card debt. Is it acceptable to negotiate with these debtors to pay a percentage of the debt rather than the full amount? With whom in the TD bank organization and with the credit card group would I speak on the matter? Is it essential to have a trustee for the process? Is there any financial or other liability on me, the attorney during this process? Thank you.
With the power of enduring attorney, it is certainly possible to enter negotiations with your relative’s creditors on their behalf. However, be aware that it may not be a simple process to prove your authorization with the various creditors. They’ll likely request documentation to verify your current authorization for dealing with those debts. It would probably be best to deal with either the collections or the legal departments of the various creditors – whoever at those institutions would be authorized to arrange settlements.
You don’t need to have a trustee to engage in informal negotiations, however if you want to deal with the creditors as one group (as opposed to individually) then it may be beneficial to consider a consumer proposal under insolvency legislation which would require a trustee.
It may be best to consult with your lawyer to discuss your liability in the process.