Foley Warns of Risks of Section 110 Violations by Non-Lawyer Preparers

While non-lawyer bankruptcy-petition preparers provide a valuable service to potential debtors who might not be able to afford an attorney, preparers who fail to comply with Section 110 of the Bankruptcy Code put themselves and their clients at risk. Shook, Hardy & Bacon Partner Ryan Foley discusses one such cautionary case in which a court found the services of a preparer service amounted to deceit, fraud and the unauthorized practice of law in “The Risky World of § 110 and Bankruptcy Petition Preparers,” an article for the American Bankruptcy Institute Journal. As Foley notes, preparers subject to Section 110 are subject to fines, forfeiture of fees, damages and attorney’s fees for violations of the code but may also face criminal charges for “playing fast and loose” with the bankruptcy process.