Four hundred-dollar for completing all papers for chapter 7 or even $300 dollar for preparation of a chapter 7 is cheap and would draw your instant intention but in the long run it becomes very expensive as the novice preparer may mess up your petition for bankruptcy and ultimately place a big glitch on your credit score and report. Also, it is a strong possibility that your case may be dismissed without a discharge. So, before you decide to go that route, please read this article very carefully. Most of these folks who depend on these petition preparers cut a sorry figure when the trustee starts asking them question one after another in the 341 meeting, and no one has prepared them or warned them. Even some of the production mill attorneys have bad time in 341 meeting as once one the trustee continuously yelled at one of the attorney. “Mr———- you had to get involved in these papers, I don’t think you have read anyone of them”, and the attorney (of course only a 341 meeting attorney) who never met this client before, was embarrassed in front of lots of people and his firm’s client as well.
Section 110 of the BAPCPA requires all bankruptcy preparation services to give their relevant personal identifying information on each bankruptcy filing. It requires copies of all bankruptcy documents to be given to the debtor and signed by the debtor, and a notice given to the debtor informing the debtor that the preparer is not an attorney and giving examples of the types of legal services, the preparer cannot provide. Bankruptcy Code Section 110(e) prohibits the petition preparer from giving legal advice of various kinds, including whether to file a petition, the appropriate chapter, dischargeability of debts, tax consequences of a bankruptcy filing, reaffirmation rights, exemptions, and bankruptcy procedural issues. If the bankruptcy petition preparer violates Section 110, or “commit any act that the court finds to be fraudulent, unfair, or deception,”, the court may grant a motion for an order requiring the preparer to pay the debtor actual damages plus statutory damages of $2000 or twice the amount paid to the preparer, whichever is greater, plus reasonable attorneys fees and costs incurred in seeking damages. A preparer who violates various provisions of Section 110 may be fined up to $500 for each separate violation, and the fine is tripled if the cour finds tha the preparer advised the debtor to hide assets or use a false social security number, failed to inform the debtors of what the preparer was filing, or failed to identify the preparer in connection with a document to be filed. Bankruptcy petition preparers are also subject to injunctive action preventing them from further work in the bankruptcy preparation business.
Questions can be referred to the Law Office of Malik W. Ahmad via email.