Bankr. E.D.N.C.: In re Johnson- Fraudulent use of Power of Attorney for Filing Bankruptcy

Summary: Melba Johnson granted a Power of Attorney to her daughter, Janet Johnson, which included both authority to obtain credit and to file bankruptcy. After obtaining and using credit cards in Melba Johnson’s name, allegedly without Melba’s knowledge, Janet (with the assistance of Melba’s other daughter Tammy) filed a Chapter 7 bankruptcy on behalf of Melba. Subsequently, Melba discovered the bankruptcy and, expressing that she knew about, needed nor wanted the bankruptcy, requested that the case be dismissed. The attorney for the debtor also sought to withdraw from representing Melba Johnson, as it was now apparent that she did not consent to her daughter’s exercise of the Power of Attorney. The Court allowed both the withdrawal of the attorney and also a dismissal of the case, allowing the Bankruptcy Administrator 30 days to investigate the matter further. For a copy of the opinion, please see: Johnson- Fraudulent use of Power of Attorney for Filing Bankruptcy.pdf