As a debt relief agency, you are liable to your
customers if you are negligent in performing the
services required by the bankruptcy law or other
services you have agreed to provide.
Specific Bankruptcy Petition Preparer Requirements:
As a BPP you must:
• sign and print your name, address and
social security number on documents you prepare
(the official bankruptcy documents provide spaces
for this information)
• provide your customers with an official
notice explaining that you are not an attorney
and can’t practice law or provide legal
advice
• provide your customers with copies of
the documents to be filed, and
• file an official document with the bankruptcy
court disclosing your fees.
The new law specifically prohibits BPPs from:
1) providing customers with information or advice
about bankruptcy, including:
• Whether to file bankruptcy
• What type of bankruptcy to file
• What debts will be cancelled
• What property can be retained
• Tax consequences of filing bankruptcy
• Whether tax claims can be cancelled
• About repayment options
• About the nature of the customer’s
debts, and
• About bankruptcy procedures and rights.
2) using the word “legal” (or any
similar term including “paralegal”)
in advertising
3) advertising under any category that includes
the word legal (or any similar term)
4) handling customers’ bankruptcy court
filing fees
5) charging a fee higher than the maximum allowed
by the court in which the documents will be filed.
6) advising a customer to exclude assets or income
that must be included on applicable forms
7) advising a customer to use a false Social
Security account number
8) failing to inform a customer that he or she
is filing for bankruptcy relief, or
9) preparing a document for filing in a manner
that fails to disclose your identity
With the training and materials offered by the
Bankrutpcy Law Project, there should be no reason
to violate any of these rules. But if there are
violations, stiff fines may result, and repeated
violations or fraudulent acts may result in a
loss of your right to engage in BPP practice.
