I have often seen people worried about their elderly parents who are buried in debt. Usually it is clear that the parents are collection proof. But, they will still be subject to dunning calls, court hearings, judgements, and liens on assets, and a lot of stress from worry.
So, my question is...can a POA file Chapter 7 on behalf of their parents?
There is no tax ramifications from chapter 7...any debt discharged is free of taxes on the discharged amount.
Typically, the parents will lose the house in chapter 7...but if they are already in a NH, and the children are left with the house being just a burden, (taxes, utilities, maintenance) why not have bankruptcy court take it? One way or another the house will be lost...if not BK, then to Medicaid later..or local property tax lien and sale for unpaid property taxes.