A power of attorney (POA) is a written authorization granting an individual the power to act on your behalf on legal, financial, or health matters if you become incapacitated. The appointee, often called an agent or attorney-in-fact, makes decisions in your best interest if you cannot make them yourself. Arranging a power of attorney in advance has numerous benefits. These include:
A well-written power of attorney outlines all your assets and gives directives on when your attorney-in-fact can access them. The authorized agent manages your property and financial assets as outlined in the document. The POA also clarifies your intent and wishes in advance, helping protect your assets from mismanagement.
Dealing with health emergencies can be hectic, especially if you have a chronic condition. A healthcare power of attorney document can help manage medical emergencies. It outlines critical information, such as your healthcare provider and health records, allowing the authorized agent to make medical decisions on your behalf.
Family conflicts can arise if you don’t have a power of attorney in place. After all, this document outlines which family members have the power to represent you. A POA can help prevent conflicts and court battles involving your loved ones.
A POA can ensure financial security if you empower a trusted expert to manage your financial matters in case of inability or incapacity. The authorized agent will handle your accounts, sign checks, file taxes, and pay bills according to plan, preventing mismanagement.
Without a POA, the court may have to appoint a guardian to manage your assets and make decisions on your behalf. You and your family will not have any control over the court-appointed conservator. You can avoid this situation by setting up a power of attorney in advance.
A POA is essential in legal, financial, and health matters. It empowers your loved ones or trusted individuals to act on your behalf, preventing family conflicts and protracted legal battles. Our experienced attorneys at O’Brien Law Firm in Southaven, MS, can help you create and revise your power of attorney documents to meet your needs. Contact us today for legal assistance.
Filing for bankruptcy can provide temporary financial relief from creditors and open doors for a fresh start. However, you may have to liquidate your assets to pay your debts. The good news is that not all assets qualify for liquidation.
Bankruptcy exemptions safeguard your property during bankruptcy procedures. These federal and state laws allow you to keep essential property so you can stay afloat even when indebted. The legislation protects some of your assets when filing for bankruptcy on the grounds that they are vital for your work and domestic needs. Items like clothing, furniture, and computers are exempt, meaning a bankruptcy trustee cannot claim them to pay your debts.
Chapter 7 bankruptcy is a liquidation bankruptcy option that protects exempt assets from seizure by a bankruptcy trustee or creditor. It prevents creditors from repossessing property or collecting payments for unsecured debts. Under this chapter, a bankruptcy trustee can only collect non-exempt items and sell them to repay creditors. Chapter 7 legally discharges your unsecured debts, giving you a fresh start.
Exempt assets in Chapter 7 bankruptcy include your primary residence, an inexpensive main vehicle, household goods, professional tools, health aids, and everyday items. Other exempt assets include federal benefits, retirement accounts, social security compensation, and life insurance policies.
If you have a regular income but cannot afford to pay your debts, consider filing for this bankruptcy option. Also known as a wage earner’s plan, Chapter 13 bankruptcy allows you to pay your debts over a specified period, typically 3–5 years. The best part is that you keep everything under a court-approved debt repayment plan. All assets automatically become exempt, meaning a bankruptcy trustee or creditor cannot repossess your property. You only need to stick to the plan to maintain your possessions.
Understanding the different bankruptcy options can be overwhelming. Our experienced attorney at O’Brien Law Firm in Southaven, MS, can help you navigate these unchartered waters. Call us today for legal assistance.
