Guidelines Pertaining to Bankruptcy Petition Preparers

UNITED STATES BANKRUPTCY COURT

GUIDELINES PERTAINING TO BANKRUPTCY PETITION PREPARERS

1. Bankruptcy petition preparers are authorized to provide typing and document filing services and may type bankruptcy petitions, forms and other documents and submit them for filing with the Clerk's Office. They are not authorized to practice law and are prohibited from giving legal advice, which includes, but is not limited to, the following advice:

a. Whether to file bankruptcy;

b. The Bankruptcy Code chapter under which to file a petition;

c. How the debtor should respond to a question, or questions, set forth in bankruptcy forms and/or the information to be provided in other documents filed in connection with a bankruptcy case;

d. The exemptions available to the debtor and/or which the debtor should claim;

e. Whether particular debts are dischargeable or nondischargeable;

f. The effect that filing bankruptcy will have on a foreclosure action and/or whether the debtor will keep their home;

g. Whether the debtor may avoid or eliminate any lien or recover any property as a result of bankruptcy;

h. Whether the debtor may and/or should redeem property;

i. Whether the debtor may and/or should reaffirm a debt;

j. Whether the debtor is entitled to a discharge under the Bankruptcy Code, and/or what defenses the debtor may have to an objection to discharge; and

k. The tax consequences of any aspect of the bankruptcy case.

2. The fee paid by the debtor to a bankruptcy petition preparer for preparing a bankruptcy petition may not exceed the amount as set forth in your jurisdiction, including expenses (such as photocopies, postage, telephone charges, and courier services).

3. According to section 110(g) of the Bankruptcy Code (11 U.S.C. § 110(g)), the fee for filing a bankruptcy petition must be paid by the debtor directly to the Clerk of the U.S. Bankruptcy Court. No part of the filing fee may be collected or received by the bankruptcy petition preparer from the debtor or on behalf of the debtor for payment to the Clerk by the bankruptcy petition preparer.

4. Leave to pay the filing fee in installments will not be granted to individuals, who within one year prior to filing the petition, paid any money, or tansferred any property to, a bankruptcy petition preparer for services in connection with filing the petition. In these cases, the full amount of the fee must be paid at the time the petition is submitted for filing.

5. Upon motion of the debtor, the trustee, a creditor, the United States Trustee, or upon its own motion, the court may disallow and order the turnover of all, or a portion, of the fee paid to a bankruptcy petition preparer. The entire fee may be ordered forfeited where the bankruptcy petition preparer has acted incompetently or illegally, has violated any provision of section 110 of the Bankruptcy Code (11 U.S.C. § 110), or has failed to comply with the provisions of these Guidelines.

6. Before preparing a bankruptcy petition or first document for filing, or accepting any money from or on behalf of the debtor, a bankruptcy petition preparer shall provide a copy of these Guidelines to the debtor, together with a copy of the Notice to Debtor Concerning Bankruptcy Petition Preparers. The debtor shall read and sign the notice, and a copy of the signed notice will be provided to the debtor by the bankruptcy petition preparer. The original plus six copies of the Notice must be filed with the court along with the petition or the first document prepared by the bankruptcy petition preparer.

7. Debtors, trustees and others who believe a bankruptcy petition preparer has violated any provision of section 110 of the Bankruptcy Code (11 U.S.C. § 110) should so advise the Office of the United States Trustee.