Why a Bankruptcy Petition Preparer Offers Little Value

A bankruptcy petition preparer company provides non-lawyer services for which they charge a fee for typing your bankruptcy petition for you.  You must complete the information requested on the application and all work must be under your control and supervision.  Basically, they are just transcribing what you tell them. They are not allowed to give you legal advice.  The only reason you would want to use their services is if you don’t have access to a computer or typewriter.  There is no reason to use them for any other purpose. 

Services

There are no state licensing, background checks, educational or experience requirements for a bankruptcy petition preparer.  They must following the following business practices:

• Provide customers with a written contract setting forth their services and fees.
• Give customers written disclosures summarizing the different bankruptcy chapters and procedures. 
• Disclose their services in their marketing brochures or advertising as debt relief agencies providing services pursuant to the federal bankruptcy code.

Filing the Documents

You must file the bankruptcy petition yourself and represent yourself in court or hire a bankruptcy attorney.  The preparer is not responsible for handling your case. They are only typing the information you tell them to type on the bankruptcy petition.  Most people who file bankruptcy use a bankruptcy attorney to handle their case.  Unless you have legal experience or are knowledgeable about the bankruptcy laws, using a bankruptcy petition preparer doesn’t really offer you much value other than clerical services.  Without proper legal advice, you may not be able to complete the petition correctly and could jeopardize your legal rights by providing the wrong information.  It is recommended that you consult with a bankruptcy attorney. 

Hire a Bankruptcy Attorney

Bankruptcy laws are very complex, and you should hire a bankruptcy attorney to prepare the bankruptcy petition and represent you in court. The attorney can advise you which bankruptcy chapter you should file under and what type of assets are exempt from bankruptcy and which debts are nondischargeable.  The attorney will explain the bankruptcy laws and procedures to you.