As POA, if I file bankruptcy for LO, what are repercussions? Pros vs Cons?

A simple Power of Attorney will not work for Bankruptcy. It needs to be a Durable Power of Attorney and must specify the following:
"To file Bankruptcy either Chapter 7 or 13 if my bills become such that cannot be handled from the funds of the family." In addition, it would need to have been signed before the onset of dementia. It should be recorded with the County Recorder's office as well.
In the event that it is too late for the POA, the Bankruptcy Attorney could file a Motion to Appoint you as "Next Friend" of your mother immediately upon filing the bankruptcy. The bankruptcy will stop all harassment calls to your home and allow the discharge of debt. In the Northern District of Ohio, we are conducting hearings by phone. I am a Bankruptcy Attorney.

You need a Durable Power of Attorney that has specific language stating the following:  To file Bankruptcy either Chapter 7 or 13 if my bills become such that cannot be handled from the funds of the family. It needs to be executed before the onset of dementia and recorded with the County Recorder.
Otherwise, your attorney can file a Motion to Appoint you as "Next Friend" in order to do the Bankruptcy. The Bankruptcy will eliminate the phone calls, you can also surrender the overpriced bed if it has a security agreement. There are no real cons given your mother's age. I recommend consulting with a consumer bankruptcy. See for a list in your area: https://www.nacba.org/ Shop around for prices. I am a bankruptcy attorney in Cleveland Ohio.

My parents were in a similar situation a few years ago. I also considered bankruptcy. I chose a different route. My father is the one with Alzheimer’s my mother the one with money problems. They were $25,000 in Credit card debt, had a really big car payment and we’re behind on their mortgage and other bills. Here’s what I did..
1. I got conservatorship and guardianship of my father. All of my parents retirement income is in his name with the exception of one Social Security payment my mother gets..
2. I used a debt consolidator call led Greenpath Financial to cancel and reduce all the interest payments on my mothers credit cards. I now pay one monthly (much lower) payment to them which they disperse to all of the creditors.
3. I contacted my mothers credit union that financed her car. I was able to arrange one monthly payment to be missed. I think it’s called a financial hardship request.
4. I contacted my parents mortgage company and went through a loan modification process. I was able to show their financial hardship and have the loan modified into a lower payment. Their home payment is now $200 less every month.
5. I created a estate account, because I was required to buy law. I use this account to pay all of my parents bills which are now automated. I allocate enough money for my mother to buy groceries and have some spending money for the month. If she needs more I can transfer money into that account from the estate account.
6. I sold my father‘s truck which he could not drive anymore anyway. With that money I was able to pay off delinquent bills and put some money into savings.

this wasn’t an easy process and it took many months to get everything in order however I think it was better than filing for bankruptcy in our case.

If you Tell your mom you are doing this out of love and concern for her future and well-being as well as taking the stress and worry away from you maybe she will understand. I know how feisty seniors can be : ) I did have support from my husband who helped with those conversations and she eventually came around. Sometimes hearing it from somebody that’s not your child is received better.

I wish you the best of luck I know how stressful this can be but I guarantee you if you were able to get control of your mother’s finances everyone will feel a load off of their shoulders.

Well, as you say, your Mom is not incompetent. She is willing to owe everyone, and that includes you. She still HAS her credit cards, and likely when they are paid down she will use again. I would make it clear, given your own investment of your own money (which, by the way, you should NOT have done. Who will take care of YOU when you end up with no money in old age?) that bankruptcy and continuing to pay you is her only choice. Otherwise you will let her go into care, and on medicaid, and she can die with these debts intact, as the nursing home will be getting all her money until she applies for medicaid.
Your plans and your past has complexity. Congratulations on doing the care plan and having all your receipts; please stay her and advise others on that, if you would. But for yourself? You and Mom should see an elder law attorney. I would make it quite gently clear that if Mom cannot cooperate now, and chooses to do things her way, she will be doing them alone.

Your profile says your mother is 90-yrs old but you don't state that she has dementia. Some questions for you:
- are you joint on any of her credit cards or loans or any debt accounts?
- are you her financial/medical or durable PoA?

You must remember that filing for bankruptcy also costs money. My MIL paid $1500 to "someone" who helped her file (and I think she also paid this person in possessions, like jewelry). The filing was valid. But 15 years after that she (and idiot husband) were in no better shape financially: he really never worked, she retired early from her low-paying job, they had a ballooning second mortgage, owed $12k in back property taxes and he still owed more than $10K in cc debt. In their early 80s he got Parkinsons and she developed short-term memory loss. My husband had PoA for her, no one had PoA for him.

Long story short we wrote the credit card collection agencies to tell them they both had dementia and had moved into nursing homes (not quite true but was imminent and it stopped them from contacting them). Any further mail was marked, "No longer at this address, return to sender." We talked to the mortgage company and basically told them the same and allowed the home to go into foreclosure. We sold everything of theirs that was sellable for cash and kept it out of their bank account (which was basically empty) for any of their future needs. It wasn't much, like $8K total. StepFIL became a ward of the state. We applied for Medicaid for her and she started in AL in a nice facility and is now in LTC.

At 90 years old I don't think there's any reason to continue paying on your mom's debt if she doesn't have enough to live on for basic survival. Your own family is priority and if I were in your position I would tell her that a condition of her living with you is to assign you as her PoA. She should transition into AL but only if your state is one for which Medicaid will pay (it doesn't in my state).

You can do a down and dirty PoA by downloading the proper docs for your state from Legalzoom.com or Rocketlawyer.com. She and you will need to have it notarized and witnessed. Download 1 copy per PoA and one for your mom. All involved need an original signed doc to present when asked.

Once you have PoA, take her for a cognitive exam (you can request this discretely from her doctor). If she does poorly on the test, then she is probably a candidate for MC or LTC and she can be transitioned into a care facility that takes Medicaid. This is all assuming she would qualify. For the immediate moment I would call social services and have them come out to see if she qualifies for any in-home services and talk to them about Medicaid for her. You simply cannot rob yourself and your children because your mom couldn't be responsible with money. That's on her. And, you are not responsible for her happiness. She is a grown woman who had 30 years as a widow to ponder and plan for her later years and exit. I'm sure you love her and none of this will go down well with her and it will feel horrible, until she's out and you see there is life after this profound change and she is getting good care and your visits aren't fraught with anger and anxiety. I wish you much courage and wisdom and peace in your heart for whatever you choose to do.

Contact an attorney for advice.

Several red flags, the primary being you say she doesn't have dementia. Most POAs become "activated" when the person is no longer capable. Even if she had dementia, as others noted, the POA would need to be a very specially written one to cover it. If she doesn't have dementia, she would have to be the one to apply for bankruptcy and sign the documents.

Short and sweet here:
https://www.sasserbankruptcy.com/blog/the-power-of-a-power-of-attorney-in-bankruptcy/

You may be able to find one or more Elder Law attys who will give an initial consultation (usually less than an hour), to answer questions like this. You would be best advised to seek legal advice. Even though it might cost a bit now to get their help, if they CAN truly help get her out of this debt, it will slow or stop the drain on your resources.

(If the stuff in storage is crap, can you just start pitching whatever isn't really worth anything, eventually emptying it? If she doesn't go there or ask to see the stuff, I'd start getting rid of it, donating what might be useful to others, etc.)

Question: If you don't charge her for groceries or sundries, how are you spending $12k on her? Generally housing and food are the 2 biggest expenses a person has, but you own the house (even if there is a MTG, that would exist with or without her, it wouldn't increase your expenses), and you're feeding her and providing supplies (unless she's eating meals fit for a King everyday, enough food for a 3rd person also won't add up to that much.) A little increase in utils wouldn't likely add up to about 1k/month. It is rather confusing how you've presented that (BTW, I juggle my own expenses, my mother's condo and MC for 2 years before we could sell the condo, managed all her care and costs for 2 more years, managed her pension and SS, continue to manage the trust and now preparing for an estate account AND my daughter's debt, which she pays for every 2 weeks, so it's not like I don't know numbers!!! I also don't get paid for any of this.)

First get in contact with a good Elder Attorney.  Second, quit spending your money to cover her debt.  Unless your name is on her credit card, quit paying it.  either call or send them a letter explaining (maybe after you contact the elder attorney) the situation that she has no money to pay the bill.   Sell the bed for a couple hundred dollars if not usable and taking up space.   The elder attorney will be able to help in all matters.  CALL TODAY.......
My mother has no life insurance either (she is 93)......I think back in their day even $1000 was a lot of money and they thought it would last or do them, but that is not how it is.  Even young kids today cannot afford life insurance........its a sad situation for a lot of people.  I don't know if you can recoop what you spent but do NOT throw away your spreadsheets......show everything to the Elder Attorney..........GOOD LUCK

If she does not have Dementia, then she could file her own bankruptcy. She is not allowed to pick and choose which credit cards are excluded. All creditors have to be listed within the petition.
If she has a zero balance, then it does not need to be listed. If creditors were inadvertently omitted, the three credit reports receive notice of the filing and creditors would automatically close the accounts (even accounts in good standing). However, your mother will be solicited for new credit almost immediately after filing the bankruptcy.
I recommend meeting (over the phone) with various counselors (most will offer a "free consultation") to get an idea of what they would charge and the benefits that a chapter 7 would offer.
I would also recommend selling her personal belongings in storage and use the funds to retain counsel. Otherwise, the trustee would be able to sell the items to pay the creditors. Keep track of what was sold, since it would need to be disclosed in the Statement of Financial Affairs Q18 of the petition.
Do not reimburse yourself for the $12K in expenses, since that would be treated as a fraudulent transfer and the trustee could ask for those funds back. It could also be an issue with Medicaid. I do recommend using her debit card to pay for food, medications, clothing, and doctor visits. Pay for those items, before paying other credit card bills.
Depending on how much she receives from all sources, SSI, retirement, and family contribution, she may qualify to have the petition done for free through Legal Aid. They would require the court filing fee to be paid which is $338. Katy Donnelly - Ch 7/13 Bankruptcy Attorney in ND Ohio

If she is living with you, then yeah, you have to take charge. See a financial, advisor you can trust.
Can you sell that bed and some of the items in storage?
If you can lose that storage bill and the bed payment, you would be better off.
You have to tell her no on spending.
Do not sign your name to any of her debt( I am sure you know that).