A bankruptcy petition preparer (BPP) is a person who is not an attorney or a business that is not under the supervision of an attorney. A BPP prepares the documents according to your instructions. You may be required to complete a lengthy questionnaire and provide sensitive information.
Therefore, you must make sure that the bankruptcy preparer is trustworthy, complies with the Bankruptcy Code, and adheres to legal guidelines to ensure that you are not practicing law without authorization.
The fee that most bankruptcy districts allow a bankruptcy petition preparer to be charged must be equal to or less than the reasonable fee approved by the courts. In the Middle District of Florida, the range of fees should be around $150 for Chapter 7 and $175 for Chapter 13.
Of course, the fee may be less in some circumstances or pro bono. For the most part, the fee for a single debtor should not be more than $200 unless a person has 25 or more creditors. Ethically, a BPP should charge a reasonable fee that the debtor can afford and still pay the bankruptcy filing fees.
WHAT A BANKRUPTCY PETITION PREPARATION CAN DO:
- Obtain the information needed to prepare the forms either through written questionnaires, copies of statements, and/or from you directly
- Type Debtor’s Voluntary Petition, Schedule D, Schedule Summary, Schedules AJ, Declaration, Declarations, and Mail Matrix (generally 54-60 pages) under you, petitioner’s (debtor’s) advice and direction.
PREPARING A BANKRUPTCY PETITION CAN’T:
- Provide legal advice
- Advertising using the word “legal” or any similar terminology
- Inform or advise you under which chapter to file
- Inform or advise you which exemptions to claim
- Inform or advise you about reaffirmation
- Inform or advise you not to include a debt or an asset
WHY PREPARE A BANKRUPTCY PETITION?
- There are several forms to prepare and you may not have time to complete each one.
- Most BPPs have bankruptcy software that allows for faster preparation time to complete the forms than if you did it yourself. The software is often too expensive for a single presentation.
- A debtor may be too stressed or depressed to fill out the forms.
- It can be more cost effective compared to hiring a lawyer.
Of course, a debtor is not limited to using a bankruptcy petition preparer to prepare their schedules. He or she may decide that a lawyer is needed to obtain legal advice for your particular situation. The debtor may not be able to afford the filing fees, let alone a bankruptcy petition preparer to write the forms.
Therefore, he or she may choose to prepare the forms or obtain assistance from pro bono sources. Some sources that a debtor may find useful are:
- US Bankruptcy Court – Various Videos, Resources, and PDF Forms
- Your State Bar Association: Access to attorneys who specialize in bankruptcy and can handle pro bono cases
- American Bankruptcy Institute – pro bono services
- Your State Legal Aid Office: Reduced Fees or Pro Bono Services
In either case, a bankruptcy preparer should be able to help you with your forms as a bankruptcy preparer and do everything possible to provide services at a price you can afford. You may be required to provide information in a 27-page questionnaire via email prior to your appointment.
You may also need to provide credit and debit statements for the last 90 days, tax returns for the last 3 years and W-2 forms, pay stubs for the last 60 days, item details of the home with estimated values and the value of clothing/clothing. Sometimes a debtor may need advice that is beyond the scope of a bankruptcy petition preparer. A debtor is not required to use a BPP service to file for bankruptcy.
DISCLAIMER
This article is provided as an educational tool and is not intended to provide legal advice. If you need legal advice, contact a lawyer.
