Bankruptcy Petition Preparers: A Compliance Checklist Under 11 U.S.C. §110

As a bankruptcy law professor, I often tell my students that the Bankruptcy Code is designed to protect the “honest but unfortunate debtor.” Part of that protection includes strict oversight of Bankruptcy Petition Preparers (BPPs).

By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).

The Bankruptcy Code and the Bankruptcy Petitioner Preparer (BPP)

Under Section 110 of the Bankruptcy Code, a BPP is defined as any person, other than an attorney or an employee of an attorney, who prepares bankruptcy documents for compensation. Because BPPs are not licensed to practice law, they are subject to strict requirements.

If you choose to use a Bankruptcy Petitioner Preparer (BPP), ensure they are adhering to these mandatory federal requirements:

Mandatory Disclosure (Official Form 119)

Before a BPP accepts any money or touches a single form, they must provide you with Official Form 119 (Bankruptcy Petition Preparer’s Notice, Declaration, and Signature ).

This form explicitly states that the BPP is not an attorney and cannot give legal advice. Both you and the preparer must sign this form. Official Form 119 must be filed with the court alongside your petition.

Identification and Transparency

A BPP cannot be a “ghostwriter.” Federal law requires them to stand behind their work.

Signature: The BPP must sign every document they prepare for you.

Identifying Number: After their signature, they must provide their Social Security Number (or the SSN of the officer in charge if it’s a firm). This allows the U.S. Trustee to track their work across all cases.

This is similar to attorneys who list their “bar numbers” on every pleading filed with the court. The difference is that bankruptcy petitioner preparers aren’t licensed by the state, so they use their Social Security number instead.

Full Copy: They must give you a complete copy of every document no later than when they present it to you for signing.

Financial Restrictions

The Code is very strict about how Bankruptcy Petitioner Prepares handles money.

No Court Fees: A BPP is legally prohibited from touching your court filing fees. You must pay the clerk of the court directly via money order or cashier’s check. This is unlike bankruptcy attorneys, who have a separate account to handle client funds known as the trust account or IOTA (Interest on Trust Account).

Reasonable Fees: A bankruptcy petition preparer cannot charge whatever they want. Most jurisdictions have “presumptive” or “no-look” fees for BPPs, often capped at a low amount, approximately $100–$200. If a BPP wants to charge more, court approval is required.

No Advertising as “Legal”

Under Section 110(f), a BPP is forbidden from using the word “legal” or any similar term in their advertisements. They cannot call themselves a “Legal Document Assistant” or list themselves under “Legal Services.”

The “No Advice” Rule

The most important requirement is what the bankruptcy petitioner preparer cannot do. A BPP is a typing service only. They violate federal law if they advise you on:

• Whether to file Chapter 7 or Chapter 13.
• Whether your debts will be discharged.
• Which exemptions you should use to protect your house or car.

The Consequences of Non-Compliance for BPPs

If a bankruptcy petitioner preparer violates these rules, the court has the authority to issue sanctions. Under 11 U.S.C. § 110(i) and (l), the court can:

1. Order the BPP to refund your fees.
2. Award you statutory damages (often $2,000 or twice what you paid them).
3. Fine the BPP up to $500 per violation.
4. If the trustee or creditor moves for damages on behalf of the debtor, the BPP can be required to pay the movant the additional amount of $1,000 plus reasonable attorneys’ fees and costs incurred.
5. Refer the matter for criminal prosecution under 18 U.S.C. § 156.

Professor’s Tip:

If your preparer tells you they can “save” your home or “wipe out” your student loans, they have already crossed the line into the Unauthorized Practice of Law. Protect your fresh start by knowing your rights.

Since bankruptcy attorneys tend to offer flexible payment plans for Chapter 7 bankruptcy, and sometimes the attorney’s fees can be included in the Chapter 13 plan, it’s worth consulting with an experienced lawyer first.

To learn more about the cons of using a bankruptcy petitioner preparer (BPP), read this prior article.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. Paralegals and students who are buying single copies can do so via Amazon Books. To access my YouTube channel, click this link. You can also listen to my podcast on Spotify.

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.

You can find additional categories by clicking below or by using the search feature at the top of this page:

• Bankruptcy
• Insights & Analysis

Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.