Maximum allowable charge!

Bankruptcy Code 11 U.S.C § 110 regulates bankruptcy petition preparers who are not attorneys and assists debtors in filing a voluntary bankruptcy petition or helps in preparing any forms filed in connection with such cases. These guidelines and regulations are the rules of conduct for bankruptcy petition preparers.

11 U.S.C. 110 does not however specifically suggest the maximum amount Bankruptcy Petition Preparers can charge per each petition they prepare. Each Bankruptcy Court usually designates a max amount that a preparer in that district can charge to prepare a bankruptcy petitions. However, some Bankruptcy courts DO NOT designate a maximum amount that a preparer can charge. If that Bankruptcy Court does not designate a maximum amount that a preparer can charge, NABPP recommends that   charging $200.00 is usually a safe amount.  Additionally, the fee amount that the bankruptcy petition preparer can charge is separate from the filing fee that the client must pay the Bankruptcy Court to file their petition. Remember, the preparer can only get paid to prepare the bankruptcy; the preparer cannot file the petition for the debtor. The preparer cannot accept any other fees for the preparer dealing directly with the preparation of the debtor’s bankruptcy petition. The filing fee for the debtor’s bankruptcy is to be paid directly to the district court at the time of the filing.

Below are some examples of what different Bankruptcy Courts allow to be charged.

-          The Northern District of California maximum allowable charge for a bankruptcy petition preparer to charge is $150.

-          The Eastern District of Michigan maximum allowable charge for a bankruptcy petition preparer to charge is $100.

-          The Northern District Ohio maximum allowable charge for a bankruptcy petition preparer to charge is $125.

As you can see each District has a different maximum allowable amount to be charged. Remember, if the Bankruptcy Court in your area does not designate a max amount a preparer can charge, then $200.00 is usually a safe amount allowable by the court. However, to be sure that the Bankruptcy Court in your area does not give a max amount you can charge, make sure you do you research so you do not have problems and are forced to give a certain amount of your hard earned money back to the debtor.