What Bankruptcy Petition Preparers Can and Cannot Do

What is a bankruptcy petition preparer?

Federal law defines the term. Under 11 U.S.C. § 110(a)(1), a bankruptcy petition preparer is "a person, other than an attorney for the debtor or an employee of such attorney under the direct supervision of such attorney, who prepares for compensation a document for filing." A "document for filing" means a petition or any other document prepared for filing by a debtor in a United States bankruptcy court or district court in connection with a bankruptcy case (11 U.S.C. § 110(a)(2)).

Two things follow from that definition. First, the label applies to anyone who takes money to prepare your bankruptcy paperwork and is not your lawyer or your lawyer's supervised employee — including a friend or a neighbor who charges you. Second, being a petition preparer is a status defined by conduct, not a license. The Bankruptcy Court for the Eastern District of Michigan puts it plainly: a preparer is "a non-attorney who, for a fee, types or prepares bankruptcy forms and documents for debtors to file with the court."

What can a petition preparer actually do for you?

The permitted work is narrow and mechanical. The Eastern District of California's guidelines state that 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." The District of Maryland describes the role as "solely that of a typing service; they can transcribe information their clients provide."

So a preparer can take the answers you have already decided on and put them onto the correct official forms, legibly and in the right boxes. That has real value if handwriting long schedules is the obstacle standing between you and a filing.

What it does not include is any judgment call about what those answers should be. The Northern District of Indiana states the role is "solely to type information on bankruptcy forms," and that preparers "cannot explain how to answer legal questions or assist in bankruptcy court." The decisions stay with you.

• Type the information you provide onto official bankruptcy forms
• Submit completed documents for filing with the clerk's office
• Give you copies of everything they prepare
• Charge a disclosed fee for that typing work

What is a petition preparer barred from doing?

The prohibition is on practicing law, and courts have spelled out what that covers. Under 11 U.S.C. § 110(b)(2)(B)(i), the written notice a preparer must give you has to inform you "in simple language that a bankruptcy petition preparer is not an attorney and may not practice law or give legal advice."

The Eastern District of California's guidelines list specific advice preparers are prohibited from giving, including whether to file bankruptcy at all, which chapter to file under, how you should answer a question on a form, which exemptions are available or should be claimed, whether particular debts are dischargeable, the effect of filing on a foreclosure, whether you may avoid a lien, redeem property, or reaffirm a debt, and the tax consequences of the case.

Courts also note structural limits: the District of Maryland states preparers "cannot sign a document on the debtor's behalf or receive payment from the debtor for court fees."

What does 11 U.S.C. § 110 require a preparer to do?

Section 110 imposes affirmative duties, and they exist so the court can identify who touched your paperwork. Under § 110(b)(1), a preparer who prepares a document for filing "shall sign the document and print on the document the preparer's name and address." If the preparer is not an individual, an officer, principal, responsible person, or partner must sign and print their own name and address.

Under § 110(c)(1), the preparer must also place an identifying number on the document after their signature, identifying the individuals who prepared it.

Under § 110(b)(2)(A), before preparing any document or accepting any fees, the preparer must give you a written notice on an official form prescribed by the Judicial Conference. That notice must be signed by you and, under penalty of perjury, by the preparer, and must be filed with the documents (§ 110(b)(2)(B)(iii)).

These are not formalities. Courts treat non-compliance as sanctionable.

Do the rules and fee limits change by state or district?

The federal definition and the core prohibition are uniform nationwide under 11 U.S.C. § 110. What varies is the fee ceiling each district treats as presumptively reasonable, and whether the state adds its own certification requirement.

The Eastern District of California caps the fee for typing and filing a bankruptcy petition at $125.00 including expenses. The District of Maryland states the maximum for the service is $125.00 unless the preparer files documentation justifying a higher fee. The District of Colorado sets a presumptively reasonable fee of $125, with a motion and supporting affidavit required for anything more. The District of North Dakota limits compensation to $90 in a Chapter 7 or Chapter 13 case absent court authorization. The Eastern District of Michigan states that by court order a preparer cannot charge more than $100.

Arizona goes further: under Ariz. LBR 2090-2, a preparer not certified under the Rules of the Arizona Supreme Court may be sanctioned, and a certified preparer must list their certification number, business phone, and email on documents they prepare.

What does using a petition preparer look like in practice?

You gather your own financial information, decide your own answers, and hand them over to be typed. The preparer completes the official forms, signs them as preparer with their name, address, and identifying number, gives you the § 110 notice to sign, and returns copies to you. You pay their disclosed fee separately from the court's filing fee — the District of Maryland notes preparers cannot receive payment from you for court fees.

You then file the case, and you appear at the meeting of creditors and any hearings. The Colorado court's warning to debtors is blunt on this point: "if you are not represented by an attorney, no one may appear on your behalf at any bankruptcy hearing."

Some courts publish lists of preparers who have been enjoined from working in that district — the Eastern District of Michigan and the Western District of Kentucky both maintain such lists. Checking your own district's list before paying anyone is a concrete, free step.

What forms and documents are involved?

Two documents exist specifically because a preparer was used. Official Form 119, the Bankruptcy Petition Preparer's Notice, Declaration, and Signature, is required whenever a preparer prepares the petition and must be submitted with it (11 U.S.C. § 110(b)(2)). Director's Form 2800, the Disclosure of Compensation of Bankruptcy Petition Preparer, discloses what you paid and must also be submitted with the petition. The District of Maryland notes that penalties and fines may be imposed for failure to comply with these disclosure requirements, citing 11 U.S.C. § 110(i).

Everything else is the ordinary filing package you would file with or without help: a list of creditors, schedules of assets and liabilities, a schedule of income and expenditures, a statement of financial affairs, payment advices from the 60 days before filing, and a statement of monthly net income (11 U.S.C. § 521(a)(1)).

Court fees are separate. A Chapter 7 case carries a $245 filing fee (28 U.S.C. § 1930(a)(1)(A), (f)(1)) plus a $78 administrative fee and a $15 trustee surcharge. A Chapter 13 case carries a $235 filing fee (28 U.S.C. § 1930(a)(1)(B)) plus a $78 administrative fee.

What should you ask a lawyer, and when is a preparer not enough?

Several courts publish the situations where they think typing help is the wrong tool. The Colorado court's warning notice lists circumstances where a debtor "may have problems and should consult an attorney," and its list is a useful checklist to run against your own facts.

Good questions to bring to a consultation include: which chapter fits my income and debts; whether the property I care about is covered by an exemption; whether a specific debt is likely dischargeable; what happens to a foreclosure or a garnishment if I file; and whether reaffirming a car loan makes sense for me. Every one of those is a question a preparer is barred from answering.

Many districts maintain reduced-fee or pro bono lists. The District of Maryland, for example, keeps a list of attorneys who have agreed to consult with low-income debtors for a reduced or deferred fee, alongside legal aid referrals.

• You have tax debts, student loans, or liens on your property
• You own property with equity, or an asset you do not wish to lose
• You own a business or are in a profit-sharing arrangement
• You have a pension plan
• You want to avoid frozen accounts, garnishment, eviction, or foreclosure
• You have used another name or Social Security number, or have filed before
• You have questions about what debts will be discharged
• You are filing a Chapter 13 case

Frequently asked questions

Is a bankruptcy petition preparer a lawyer?

No. 11 U.S.C. § 110(a)(1) defines a petition preparer as a person other than an attorney for the debtor, or that attorney's directly supervised employee. The written notice a preparer must give you before taking any fee has to say in simple language that they are not an attorney and may not practice law or give legal advice (11 U.S.C. § 110(b)(2)(B)(i)).

Is a typing service the same thing as a petition preparer?

Yes, in substance. Courts use the phrase to describe exactly what the role is limited to. The District of Maryland states a preparer's role is "solely that of a typing service; they can transcribe information their clients provide." If someone charges you to prepare bankruptcy documents and is not your attorney, § 110 applies to them regardless of what they call themselves.

How much can a bankruptcy petition preparer charge?

That depends on your district, and the amounts differ. The Eastern District of California, District of Maryland, and District of Colorado each identify $125 as the presumptively reasonable or maximum figure; the District of North Dakota limits compensation to $90 absent court authorization; the Eastern District of Michigan states $100 by court order. Check your own district's local rules for the figure that applies to you.

Can a petition preparer tell me whether to file Chapter 7 or Chapter 13?

No. The Eastern District of California's guidelines specifically list "the Bankruptcy Code chapter under which to file a petition" among the legal advice preparers are prohibited from giving, alongside whether to file at all. Chapter selection turns on income, assets, debts, and what you are trying to protect — questions that belong with an attorney or a legal aid organization.

What happens if a preparer breaks these rules?

Courts can act. The District of Maryland notes that penalties and fines may be imposed for failure to comply with the disclosure requirements, citing 11 U.S.C. § 110(i), and that a court may enjoin a preparer who charges excess fees or violates bankruptcy law. Districts including Michigan Eastern and Kentucky Western publish lists of preparers barred from working there.

Do I have to disclose that I used a petition preparer?

Yes. The Statement of Financial Affairs asks directly whether you paid someone who is not an attorney to help fill out your bankruptcy forms, and a "yes" requires attaching Official Form 119. The Eastern District of Michigan warns that failing to disclose a preparer may carry profound consequences, including denial of a discharge.

Do I need to pay someone just to get the bankruptcy forms?

No. The Eastern District of Michigan states plainly that you do not need to hire a petition preparer to obtain the required forms, and that current federal and local forms are available free online and in person at the clerk's office intake counters. Paying for typing is a choice; paying for access to the forms themselves is not necessary.

Can a preparer come to my hearing with me?

No. The Northern District of Indiana states preparers are barred from assisting in bankruptcy court, and the Colorado court's warning notice states that if you are not represented by an attorney, no one may appear on your behalf at any bankruptcy hearing. You attend the meeting of creditors and any hearings yourself.

Sources

• 11 U.S.C. § 110 — Penalty for persons who negligently or fraudulently prepare bankruptcy petitions · official source
• 11 U.S.C. § 521 — Debtor's duties · official source
• CAEB official material — Guidelines Pertaining to Bankruptcy Petition Preparers in Eastern District of California Cases
• Bankr. D. Md. official page — Bankruptcy Petition Preparers
• Bankr. D. Md. official page — Legal Assistance
• Bankr. E.D. Mich. official guidance — Information about Bankruptcy Petition Preparers
• Bankr. E.D. Mich. official guidance — Notice about Prohibited Bankruptcy Petition Preparers
• Ariz. LBR 2090-2
• D.N.D. LBR 2016-2
• D. Colo. L.B.R. 2016-4
• COB official material — Risks of paying a non-attorney
• Bankr. N.D. Ind. official page — Filing Without an Attorney
• Bankr. E.D. La. official guidance — Chapter 13 Form Packet
• Bankr. S.D. Iowa official guidance — List of Required Forms and Fees to File for Bankruptcy
• Bankr. W.D. Ky. official guidance — Bankruptcy Petition Preparers
• D.C. LBR 2016-3
• 28 U.S.C. § 1930(a)(1)(A), (f)(1)
• 28 U.S.C. § 1930(a)(1)(B)
• Bankruptcy Court Miscellaneous Fee Schedule, Item 8
• Bankruptcy Court Miscellaneous Fee Schedule, Item 9

Related

• Find your local bankruptcy court
• Build your personalised roadmap
• Chapter 7
• Chapter 13
• Exemptions: what they protect
• Which debts get discharged