If you’ve started researching bankruptcy, you may have come across companies advertising “low-cost bankruptcy document preparation” or “typing services.”
It’s important to understand what these services are — and what they are not.
What Is a Bankruptcy Document Preparation Service?
A bankruptcy document preparer (sometimes called a “BPP”) is not an attorney.
They are individuals or companies that:
- Type up your bankruptcy forms
- Input information that you provide
- Print and assemble paperwork for filing
They are legally allowed to provide clerical services only.
That’s it.
What They Cannot Do
Under federal law, a bankruptcy petition preparer cannot:
- Give you legal advice
- Tell you whether you should file Chapter 7 or Chapter 13
- Advise you about exemptions
- Tell you what property you can keep
- Explain how to protect assets
- Represent you in court
- Speak to the trustee for you
- Help you develop a Chapter 13 repayment plan
- Advise you how to answer trustee questions
If they do, they are violating the law.
Why This Matters
Bankruptcy is not just paperwork. It is a legal process with serious consequences if handled incorrectly.
Common issues we see when someone uses a document preparer:
- Assets not properly disclosed
- Wrong exemption laws applied
- Income calculated incorrectly
- Failure to list all debts
- Improperly completed means test
- Missed deadlines
- Cases dismissed
- Loss of property that could have been protected
Even small mistakes can have big consequences.
The Court’s View of Petition Preparers
Bankruptcy courts require document preparers to:
- Disclose that they are not attorneys
- Provide their name and identifying information
- Charge only reasonable fees
Courts regularly fine or sanction preparers who overstep their role.
Why? Because consumers are often harmed when they believe they are receiving legal guidance — but are not.
When Might Someone Use a Document Preparer?
Typically, only in the most straightforward, no-asset Chapter 7 cases — and even then, the individual assumes all legal risk.
If something unexpected arises (and it often does), there is no legal guidance or representation.
The Key Difference: Typing vs. Legal Strategy
A document preparer:
Types what you tell them.
An attorney:
Analyzes your financial situation, applies the law, protects your assets, prepares you for your 341 meeting, and represents you throughout the case.
Bankruptcy relief is powerful. So is the risk of doing it incorrectly.
The Bottom Line
Bankruptcy document preparation services are clerical services only. They cannot provide legal advice or representation.
If you are considering bankruptcy, it’s important to understand the difference between someone who fills in forms and someone who is legally responsible for protecting your interests.
Before making a decision based solely on cost, make sure you understand what is — and is not — included.
If you have questions about your options, we’re here to provide guidance so you can make an informed decision about your financial future.
