CAEB — Guidelines Pertaining To Bankruptcy Petition

CAEB — Guidelines Pertaining To Bankruptcy Petition Preparers In Eastern District of…¶

Source: https://www.caeb.uscourts.gov/documents/Forms/GeneralOrders/General%20Order%2023-06.pdf

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FILED July 14, 2023 1 UNITED STATES BANKRUPTCY COURT UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF CALIFORNIA 2 EASTERN DISTRICT OF CALIFORNIA

4 In re ) ) 5 GUIDELINES PERTAINING TO ) General Order 23-06 BANKRUPTCY PETITION PREPARERS IN ) 6 EASTERN DISTRICT OF CALIFORNIA ) CASES ) 7 )

9 It is ordered that the following guidelines are issued pursuant to Local

10 Bankruptcy Rule 1001(d) and concern the compensation and conduct of bankruptcy

11 petition preparers1 in the Eastern District of California bankruptcy cases. They reflect

12 rebuttable presumptions which the court may, upon motion, notice to the debtor, case

13 trustee and U.S. Trustee, modify in a particular case or class of cases.

15 1. Bankruptcy petition preparers are authorized to provide typing and document

16 filing services and may type bankruptcy petitions, forms, and other documents

17 and submit them for filing with the Clerk’s Office. They are not authorized to

18 practice law and are prohibited from giving legal advice, which includes, but is

19 not limited to, the following advice:

20 a. Whether to file bankruptcy;

21 b. The Bankruptcy Code chapter under which to file a petition;

22 c. How the debtor should respond to a question, or questions, set forth in bankruptcy forms and/or the information to be 23 provided in other documents filed in connection with a bankruptcy case; 24 d. The exemptions available to the debtor and/or which the 25 debtor should claim;

26 e. Whether particular debts are dischargeable or nondischargeable; 27

28 1 Section 110(a) of the Bankruptcy Code (11 U.S.C. § 110(a)) defines “bankruptcy petition preparer” as a person, other than an attorney or an employee of an attorney, who prepares for compensation a petition or other document for filing by a debtor in a U.S. bankruptcy court or a U.S. district court in connection with a bankruptcy case.

Exceptions & meaning →

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1 f. The effect that filing bankruptcy will have on a foreclosure action and/or whether the debtor will keep their home; 2 g. Whether the debtor may avoid or eliminate any lien or recover 3 any property as a result of bankruptcy;

4 h. Whether the debtor may and/or should redeem property;

5 i. Whether the debtor may and/or should reaffirm a debt;

6 j. Whether the debtor is entitled to a discharge under the Bankruptcy Code, and/or what defenses the debtor may have 7 to an objection to discharge; and

8 k. The tax consequences of any aspect of the bankruptcy case.

10 2. The fee paid by the debtor to a bankruptcy petition preparer for typing and filing

11 a bankruptcy petition may not exceed $200.00, including expenses (such as

12 photocopies, postage, telephone charges, and courier services.)

13 3. According to section 110(g) of the Bankruptcy Code (11 U.S.C. § 110(g)), the

14 fee for filing a bankruptcy petition must be paid by the debtor directly to the Clerk

15 of the U.S. Bankruptcy Court. No part of the filing fee may be collected or

16 received by the bankruptcy petition preparer from the debtor or on behalf of the

17 debtor for payment to the Clerk by the bankruptcy petition preparer.

18 4. Upon motion of the debtor, the trustee, a creditor, the United States Trustee, or

19 upon its own motion, the court may disallow and order the turnover of all, or a

20 portion, of the fee paid to a bankruptcy petition preparer. The entire fee may be

21 ordered forfeited where the bankruptcy petition preparer has acted incompetently

22 or illegally, has violated any provision of section 110 of the Bankruptcy Code

23 (11 U.S.C. § 110), or has failed to comply with the provisions of these

24 Guidelines.

25 5. Before preparing a bankruptcy petition or first document for filing, or accepting

26 any money from or on behalf of the debtor, a bankruptcy petition preparer shall

27 provide a copy of these Guidelines to the debtor, together with a copy of the

28 Bankruptcy Petition Preparer’s Notice, Declaration, and Signature (Official Form

119). The debtor shall read and sign the notice, and a copy of the signed notice

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1 will be provided to the debtor by the bankruptcy petition preparer. The original

2 plus one copy of the Bankruptcy Petition Preparer’s Notice, Declaration, and

3 Signature must be filed with the court along with the petition or the first

4 document prepared by the bankruptcy petition preparer.

5 6. Debtors, trustees and others who believe a bankruptcy petition preparer has

6 violated any provision of section 110 of the Bankruptcy Code (11 U.S.C. § 110)

7 should so advise the Office of the United States Trustee.

9 DATED: 10

11 Fredrick E. Clement Ronald H. Sargis 12 Chief Bankruptcy Judge Bankruptcy Judge

14 Christopher D. Jaime René Lastreto II 15 Bankruptcy Judge Bankruptcy Judge

17 Jennifer E. Niemann 18 Bankruptcy Judge

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