What are some of the concerns of the U.S. Bankruptcy Court regarding bankruptcy petition preparers? Do you think that the bankruptcy petition preparer role leads many to tread very close to the unauthorized practice of law? Why or why not?

What will be an ideal response?


The law defines a "bankruptcy petition preparer" (BPP) as "a person other than an attorney for the debtor or an employee of such attorney . . . who prepares for compensation a document for filing." Many preparers operate within the strict limits the law imposes on them, but some do not. Bankruptcy petition preparers are required to notify clients, in writing, that they are not attorneys and that because of their lack of attorney status, they cannot render legal advice or engage in the practice of law.

Many bankruptcy petition preparers have been fined for the unauthorized practice of law and for collecting higher than the $200.00 fees for preparation allowed by the bankruptcy court. In its fiscal year 2011 report, the U.S. Trustee Program said bankruptcy trustees nationwide had filed 504 actions against BPPs, with a success rate of 98.8 percent. More than $1.9 million in fines were imposed and some $419,000 in fees recovered during that year, the report said.

Students will offer their own reasons for or against BPPs and their own reasoning regarding the role of a BPP leading the BPP to commit UPL.

Legal Studies & Paralegal

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What will be an ideal response?

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A delegation of authority to an administrative agency must be ________and it must have ________ in order to be constitutional.

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