Can a Debt Collector Come After the Power of Attorney After a Death?

By Teo Spengler

A creditor, who has lost patience with a debtor, may bring in a debt collector to assist him in collecting the money due. Debt collectors have a legal right to contact a debtor or an agent for the debtor acting under a financial power of attorney. Once the debtor dies, however, both these options are foreclosed.

Financial Power of Attorney

A power of attorney is a legal document under which a person termed a principal gives someone authority to make financial or medical decisions in his place. The authority of the agent is described in the document. It can be limited, like the authority to sell the principal's car, or general, giving the agent the power to take any action the principal could take himself.

Durable Power of Attorney

Generally, powers of attorney expire if the principal becomes incapacitated. However, a durable power of attorney gives the agent authority to act even after the principal becomes incapacitated. All powers of attorney, however, expire at the death of the principal.

Ready to appoint a power of attorney? Get Started Now

Creditor's Remedies

If a debtor dies, a creditor cannot sue the debtor's agent under a power of attorney, since the document expired at the principal's death. Instead, he may present a claim against the debtor's estate in probate court.

Ready to appoint a power of attorney? Get Started Now
Pros & Cons of Filing Bankruptcy

References

Related articles

What Is a Deed of Trust With Assignment of Rents?

Legal Rights After Chapter 13 Dismissal

About Rights of Power of Attorney After Death

Related articles

Can a Bankruptcy Trustee Take Possession of a Home From a Lender?

Failure to Pay Living Trust Debt

Can You Include Returned Checks in Chapter 7?

What Won't Be Dismissed in Chapter 7

Browse by category
Ready to Begin? GET STARTED