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She should have been applying for medicaid to get extended care
. Her daughter should be applying for her and she needs to go to social services to get the medicaid approved now that it is really being needed.
Bankruptcy does not solve the problem of her needing extended care, that is a medicaid issue.
Also, someone needs to get guardianship over her if the daughter does not have a PoA and this is done by needing a local attorney to file a petition for guardianship in the court and produce medical evidence of her mental and physical incapacity to care for her own affairs and the court would place the daughter or whoever can manage her affairs as guardian and they can act for the sister in laws benefit in getting medicaid and any other decisions that have to be made.
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