How to Become a Bankruptcy Preparer

Bankruptcy preparers who are found guilty of fraud or negligence could be fined as much as $2,000.

The United States Bankruptcy Code states that anyone except an attorney can prepare documents to be filed in the U.S. Bankruptcy Court. Thus, almost everyone can become a bankruptcy preparer, also known as a bankruptcy petition preparer, because there are no other requirements. This is not to detract from the importance of the profession since bankruptcy is a complex process affecting many Americans, particularly in dire economic times. Petition preparers' activities are generally monitored by the office of trustees of whichever bankruptcy court they work in.

Instructions

1. Familiarize yourself with U.S. Bankruptcy Code statutes and penalties to protect yourself once you begin to practice. You may face civil action or fines if, for example, you neglect to provide the debtor with a written notice providing them with further legal advice, while reminding them you are not an attorney. The notice must be signed by the debtor and submitted with all other bankruptcy documents.

2. Take classes in business, law or marketing at a local college or university. While there are no educational requirements to become a bankruptcy preparer, you may benefit from the business and marketing training should you decide to start your own business in the future. Develop solid communication skills, as you will likely interact with debtors, credit counselors and attorneys while on the job.

3. Sign up for more specialized classroom training with an organization like the National Association of Bankruptcy Petition Preparers (NABPP) or the Scriveners Society, a vocational training institute. You will be taught the ins-and-outs of bankruptcy law and how to carry out your job's duties. Pay the associated membership fees. Complete a training program, such as the NABPP program, which entails attending at least two online seminars or a day-long live seminar. Upon completing the training you will receive your NABPP certification, which is valid for two years.

4. Start your own business. Some preparers work out of bankruptcy courts, while others become independent contractors. This is where your educational background can be useful. The NABPP offers several continuing education courses that cover a wide-range of topics, such as reporting requirements and guidelines for dealing with credit counselors.

References

• National Association of Bankruptcy Petition Preparers: Frequency Asked Questions
• National Association of Bankruptcy Petition Preparers: Home
• McDonald Law Offices PLLC: 11 U.S.C. 110
• National Association of Bankruptcy Petition Preparers: Bankruptcy Preparer Training Class
• The Scriveners Society: Petition Preparer