What are the pros and cons of using a bankruptcy petition preparer?

Technically, a person can file for bankruptcy without any assistance. Doing so, however, is usually not recommended because the process is complicated and errors can jeopardize the outcome. Bankruptcy preparation services are one type of professional assistance that is available. Choosing to utilize these services has pros and cons.

The Positives

Individuals providing bankruptcy preparation services are commonly referred to as petition preparers. They assist individuals by preparing the documents that are necessary when filing for bankruptcy. Their role is simply to produce paperwork based on information that is provided by their clients.

This type of service can prove to be a major benefit for certain individuals such as those without access to a computer, those with limited English literacy skills, and those who do not know what they need to submit to the Bankruptcy Court. If an individual makes a wise selection when choosing a petition preparer, there is little need to worry about missing or incomplete paperwork.

The Negatives

It should be reiterated that petition preparers produce documents based on information that they are given. These individuals cannot assist their clients by providing any sort of advice. They are prohibited from providing any answers or information on their clients’ behalf. Petition preparers cannot represent a client in communicating with staff from the Bankruptcy Court if issues arise. These individuals are not even allowed to file the paperwork with the Court after the documents are completed.

Yet, their services can cost hundreds of dollars and a person may still need to pay a legal representative. For this reason, it is best to consult with a bankruptcy attorney before hiring a petition preparer.