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 Threat of bankruptcy hanging over my brothers head

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T O P I C    R E V I E W
Roger.99 Posted - 18 March 2012 : 11:25:52
Firstly my name is Roger Hudson and I am my brother's (Norman Snowdon Hudson)Power of Attorney Financial and Property. My brother is 79 years old and resides in a Residential Home in Bridlington East Yorkshire. As a result of his wife passing away the house was sold giving a net profit of some £84,000. Bearing in mind my brother is suffering from Dementia he apparently was sent a notification of indebtedness to the LA three years after the event demanding £18,747.50 in back payments for this increase in his wealth. He had NOT received any prior notice of this increase by the LA until 23/08/07. Because he had 'plenty of money' in his account after the sale he naturally decided to spend money on electrically propelled wheelchairs - he only had the use of his left arm due to a stroke aand therefore could not use a manual chair. He also spent money on other acceptable essentials over the three years thus disposing of the proceeds from sale.
I am preparing expenditure accounts on behalf of the LA but there is still the threat of bankruptcy 'hanging over his head' as during my discussions with the LA they don't admit to any incompetance etc.
I would lke to know if it is better for him to pre-empt the LA and file his own partition should they not accept my calculations - that is if the magistrate or Judge throw the case out because of the cavalier attitude of the LA
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RHB Posted - 18 March 2012 : 12:09:18
I'm a bit confused - if you had power of attourney do you mean you sorted out the wheelchair etc for him? Did you not look at any of the papers he received? is there any money left at all? £84,000 is a hell of a lot to get through in three years if you have no housing, heating or food costs. not sure why you think the LA have been incompetent? I think a few more details are needed but if you weren't his power of attorney for those 3 years then I would let the LA make him bankrupt if he hasn't the money to pay it. if you were, then you are in charge of his financial affairs & I think it would become more complicated as you have disposed of assets that should have gone to supporting his residential care fees.
debtinfo Posted - 18 March 2012 : 12:07:37
also, when did you become his POA
debtinfo Posted - 18 March 2012 : 12:06:20
hi roger (might be best to remove your full name)

when was the sale of the house, did he have any of the proceeds left in august 2007, have the LA agreed that they did not send any correspondence before August 2007, how did they know about him receiving the money, did you/he declare it to them, did they find out by other means

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