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T R TAX BANKRUPTCY DIVISION

NOTICE ABOUT BANKRUPTCY PETITION PREPARERS & PETITION PREPARER GUIDELINES

PLEASE BE AWARE of the restrictions on the services that a bankruptcy petition preparer may provide.  A bankruptcy petition preparer is not an attorney and is not authorized to practice law or give legal advice in a case

A bankruptcy petition preparer may only type forms.  If you choose to represent yourself, it is very important that you educate yourself about the different forms of bankruptcy to find out which is best for you.  We cannot give you any such information or advice, nor can we tell you what your options are.

1. A bankruptcy petition preparer MAY NOT provide any legal advice, including advice on:

(a)    Determining whether you should or when to file bankruptcy;

(b)    Explaining the difference between chapters or determining under which chapter of the Bankruptcy Code to file a voluntary petition;

(c)    Explaining information necessary to complete the bankruptcy petition;

(d)    Advising debtors regarding the claiming of exemptions;

(e)    Explaining or determining which debts are priority, secured, or unsecured;

(f)      Suggesting or determining where items belong on the petition, based on information provided by a debtor;

(g)    Preparing any pleadings other than filling out official forms promulgated by the United States Supreme Court or by the United States Bankruptcy Court in your district;

(h)    Explaining or discussing the impact that a bankruptcy filing may have on an eviction or foreclosure proceeding;

(i)      Explaining or discussing the impact that a bankruptcy filing may have on the dischargeability of debts, including outstanding student loans or taxes;

(j)      Explaining, discussing, or assisting a debtor with a reaffirmation agreement;

(k)    Assisting or appearing with the debtor or on a debtor’s behalf at the § 341(a) Meeting of Creditors;

(l)      Discussing or assisting a debtor with determining whether a certain debt should be reaffirmed or redeemed;

(m)  Providing advice or guidance to a debtor regarding the actions that may or may not be taken by a creditor, United States Bankruptcy Trustee, United States Bankruptcy Court, United States Bankruptcy Judge, or another third party.

2.  Translating documents may not necessarily be considered the practice of law. However, translation services provided to a debtor should not include services listed in paragraph 1 above.

3.  A petition preparer has an ongoing responsibility to disclose to the court any fees received or compensation agreement not previously disclosed to the court. Within ten (10) days of receiving additional compensation or entering into an agreement with a debtor(s) for additional compensation, the petition preparer shall disclose all additional fees or compensation arrangements to the court.

4.  The charge typically allowed for a bankruptcy petition preparer’s services is no more than $200, including, but not limited to, any and all expenses such as photocopying, costs of credit reports, postage and telephone charges. All filing fees shall be made payable to the “United States Bankruptcy Court,” and the petition preparer must disclose the amount of those filing fees to the debtor when the preparer informs the debtor of the cost of his or her services.

5.  Debtors have the right to file their bankruptcy documents in person at the Bankruptcy Court or by mailing them to the Court.

6.  Before typing any document whatsoever the bankruptcy petition preparer must provide a copy of these Guidelines to the debtor(s), which must be signed and dated by the debtor(s) as provided below. The original signed copy of the Guidelines will be retained by the preparer, and an exact copy of the Guidelines will be provided to the debtor(s).

8.  A petition preparer will keep a copy of the Guidelines signed by the debtor for a period of not less than two years from the date of signature.

10.  Anyone, including a debtor, who believes that a bankruptcy petition preparer has violated 11 U.S.C. § 110 or has given legal advice, should advise the United States Trustee in writing of the circumstances.

 

DISCLAIMER: The information on this website is provided with the understanding that the authors and publishers are not herein engaged in rendering tax, legal or other professional advice and services. As such, it should not be used as a substitute for consultation with professional tax, legal or other competent advisers. While we have made every attempt to ensure that the information contained in this web site has been obtained from reliable sources, Tax Return Services, Inc. is not responsible for any errors, omissions, or for the results obtained from the use of this information.  We make no representation, guarantee or warranty as to the legal ability, competence, or quality of representation or service by any attorney, law firm, or any advertiser. We disclaim all responsibility for any loss of any kind resulting in any way from any errors on this site or omissions therefore, from any errors or omissions of said parties, and from any infringement, direct or indirect.

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Last modified: 10/22/07