Frequency Asked Questions
1. Who can be a bankruptcy petition preparer?
Under 11 U.S.C. 110 any person that is not an attorney can be a bankruptcy petition preparer. That means that without a college education you can develop your own business in this field.
2. What previous knowledge do I need to have?
No prior bankruptcy experience is mandated in the statute. However, to protect yourself basis training is recommended. We recommend level 1 training which is two online seminars or 1 full day of training at a live seminar.
3. How much can I make doing bankruptcies?
Using most district maximums as an average, a petition preparer can make upwards of $60,000 per year. This is an average some preparers are making more than that and some are making less. We have two preparers that have grossed over $100,000 per year. In this economy there is growth in this business.
4. What are the benefits of this training?
Training benefits the preparer by preventing application of the penalty portions of 11 U.S.C. 110(h). Fines under that section can be as high as $2000 per incident with an additional penalty of being forced to return any money received in payment. The ultimate penalty is to be prevented from every completing any more petitions as a preparer.
5. How do I get started my membership?
The membership fee must be paid and three of the basic classes must be completed. Plus the certification exam must be completed.
6. What do I need to participate in an online seminar?
High speed internet connection, a telephone and a computer.
7. What benefits are available for members?
Customer referral, insurance programs, certification and participation in lobbying congress to protect your livelihood.
8. How does the defense fund help members?
The defense fund is being established to assist members in paying for defenses against unfair charges being lodged against them. Plus the structure of the class action suit.
This just in: You must hand out disclosure forms before you begin work on a bankruptcy.
9. Can I participate in the Lobbying Efforts and the "Class Action Suit"?
Yes, we encourage all members to participate and to write their congress person.
10. Can we change section 11 U.S.C 110?
Yes, but only through a united effort. The legislative background shows that no petitions presented compelling arguments to safe guard the rights of the preparer during senate hearings on section 110.
11. What is a local chapter?
Local chapters are being formed to increase the available training opportunities. The Washington Office will coordinate all local chapters. Washington Office will located in Washington, DC 20006.
12. How do I start a local chapter?
Please contact Brandon or Donald in membership for details.
13. Can I still work with attorneys?
Nothing in the code would prevent a trained preparer from assisting an attorney in assembling the documents. There is a large demand for trained preparers. Also we are preparing an associate program with "self-help lawyers" to assist you with online preparation. This could be the future of our business!
14. So why shouldn't I join and start my own business?
Okay, that you must answer.