Power of Attorney: Helping Others Deal with Debts

It’s possible to help other people in dealing with their debts by acting on their behalf through a power of attorney. This is a consent that is legally recognised to act on behalf of the person in debt.

Also, if without a power of attorney, you can speak to us about the person in debt whom you’re trying to help. This can be made possible when you have the person’s consent over the phone or in writing.

Both options can help you if you find it hard to deal with your debts. You can ask someone you trust and give them the consent to resolve aid you in resolving your debts.

Types of Power of Attorney

There are two types of power of attorney, one of both types can be applied, depending on what is appropriate for the circumstances:

Power of Attorney for Financial Affairs

This is utilized when a person needs your help in dealing with the debts. The person in debt will give you consent to permission to manage debts concerning mortgaged, pensions and others alike.

Power of Attorney for Health and Welfare Decisions

If you need to act on behalf of someone to decide for medical treatment or care, this is the type of authority or consent that you need.

When can I use of attorney useful?

If you are helping a person in dealing with their debts, holding a power of attorney can be legally recognised by creditors or lenders. You can send a copy of this document to all lenders and creditors involved or contact each of them should you wish to hand it over personally and discuss.

Moreover, it is useful when helping a vulnerable individual deal with their debts. It is also useful if the person you’re helping has difficulty in communicating both verbal or written. If someone is dealing with debts while in prison, this can also be a useful means to help the person manage his or her debts.

Who can get power of attorney?

Most people can get power of attorney and act on behalf of the person involved. Oftentimes, a person in debt gives consent or permission to a trusted family or friend. In some cases, a legal or medical care representative can also act as a personal attorney.

The person acting as an attorney must be over 18 years of age or 16 years or beyond in Scotland. Also, the person acting as an attorney shouldn’t be currently bankruptcy when acting for financial affairs. Bankrupt individuals are only allowed to act as an attorney for health and welfare decisions.

Helping someone who is incapable to give permission or consent

A person in a good state of mind and health can give permission themselves. If someone is ill or suffering from dementia or any conditions where a person can no longer make a sound decision, you may need to secure a legal consent from the court. It is more complicated since the court discerns whether you are permitted to make the decision for the person involved. Apart from that, there are also costs involved. You may also need the help of a solicitor, social services or a medical representative to have this in place.

If you’re assisting an older individual deal with their dents, you can get more details regarding power of attorney from Age UK. They have factsheets on their website that you can refer to or you can contact them on 0800 169 2081.

Additional help with the power of attorney

If you are helping someone under the following circumstances, your local authority social services department or either health or care specialists who are connected can give you additional guidance on power of attorney:

  • mental or physical health issues
  • communication difficulties
  • substance abuse problems

Moreover, the following Government websites give extra details on the means of setting up a power of attorney along with the forms and costs: