The Bankruptcy law does allow non-lawyers to help people file for bankruptcy protection on their own. They are called “Petition Preparers” and there’s a whole section of the Bankruptcy Code devoted to them. But, just because they are out there, does not mean that they are a good option.
The petition preparer by law can only act as a “typing service”. They cannot advise you, as a lawyer can, how to fill out the forms, and more importantly, what the legal consequences of your bankruptcy case will be. They need to give warnings to people that they are not lawyers, and cannot give any legal advice. They need to put their name and address on the petition, and sign it. They cannot tell you whether filing a bankruptcy will help or hurt you, or whether you should file Chapter 7 or Chapter 13 Bankruptcy. If they give legal advice of any kind, or don’t follow the rules, they can be penalized.
Recently, Courts in Michigan and Wisconsin have cracked down on petition preparers who have stepped over the line.
The illegal preparers have been required to return money to people, or have been sentenced to jail time because they did not follow the rules, or gave people legal advice. There are good reasons why only lawyers are allowed to give legal advice, just as only doctors can give medical help.
If it sounds too good, or too cheap, to be true, it probably is. Most of the time, helping fix a case filed with a petition preparer’s help is more expensive than using an attorney in the first place. It is always best to contact an experienced bankruptcy attorney to discuss your options.
Daniel J. Winter
BankruptcyLawChicago.com
312-789-9999
Offices in Chicago, Gurnee, Oak Lawn, and Skokie, Illinois
