The most important skill in bankruptcy petition preparation is knowing what not to say. Every bankruptcy petition preparer and virtual bankruptcy assistant (VBA) eventually hears the same questions from nervous debtors: Should I file Chapter 7 or Chapter 13? Will I lose my car? Can I keep my tax refund? Answering them feels helpful. It is also the fastest route to a charge of the unauthorized practice of law.
This guide explains where the line sits, why it exists, and gives you word-for-word scripts you can use the next time a debtor asks for advice you are not allowed to give.
Why the unauthorized practice of law matters in bankruptcy
Bankruptcy is a legal proceeding. Choosing a chapter, deciding what to exempt, and predicting what a creditor or trustee will do are all legal judgments, and in every state those judgments belong to a licensed attorney. A mistake is not a clerical error: the debtor can lose property, lose the discharge, or have the case dismissed.
That is why unauthorized practice of law (often shortened to UPL) is taken seriously. Depending on your state and the facts, the consequences can include court-ordered fines, disgorgement of fees, injunctions against working in the field, and in serious cases criminal referral. It can also put the supervising attorney's license at risk.
Two roles, two sets of rules
Which rules apply depends on who you work for.
- Bankruptcy petition preparer (BPP). A non-attorney who prepares bankruptcy documents for the debtor, with no attorney involved, is regulated by 11 U.S.C. §110. The statute requires the preparer to sign the documents, include an identifying number, give the debtor a copy, and disclose fees. It also flatly prohibits giving legal advice. Courts can fine preparers who break these rules. Our guide What Is a Bankruptcy Petition Preparer? covers the statute in detail.
- Virtual bankruptcy assistant or bankruptcy petition specialist working for an attorney. When you draft petitions for a law firm, the attorney is the one filing and signing, and the attorney is responsible for supervising your work. The statute's definition of a preparer excludes an attorney and an attorney's employee. Independent contractors are a grayer area that courts and state bars treat differently, so the safest structure is one where the attorney directs, reviews, and takes responsibility for everything you produce. See The Difference Between a Bankruptcy Assistant and a Petition Preparer.
Either way, the practical rule is identical: you may collect facts and prepare forms; you may not tell a debtor what the law means for their situation. In most states, lawyers must also supervise the non-lawyers who assist them (the idea behind the ABA's Model Rules 5.3 and 5.5), so a good attorney will want you to stay well inside the line.
What counts as legal advice?
Section 110(e) spells out the kinds of advice a bankruptcy petition preparer may never give. Paraphrased, the list is:
- Whether the debtor should file bankruptcy, or which chapter is appropriate
- Whether the debtor's debts will be discharged
- Whether the debtor will be able to keep a home, car, or other property
- The tax consequences of filing
- The effect of bankruptcy on the debtor's credit
- How to characterize the debtor's property or debts (for example, whether a debt is a priority claim or whether property is exempt)
- Bankruptcy procedures and rights
Even if you work for an attorney and §110 does not technically bind you, this list is the best map of the territory available. Treat it as your own rulebook.
What you can do, and what crosses the line
| Generally safe | Crosses the line |
|---|---|
| Collecting facts and documents from the debtor | Telling the debtor which chapter to file |
| Entering the debtor's information into the petition software | Deciding how an asset or debt should be classified, without attorney direction |
| Reading a form question aloud and asking the debtor for the answer | Interpreting what a question means legally |
| Flagging an issue for the attorney in writing | Resolving that issue yourself and telling the debtor the result |
| Scheduling, reminders, document organization | Predicting what the trustee or a creditor will do |
| Telling the debtor what the attorney has already decided | Advising which creditors to pay, or what to do with property, before filing |
Word-for-word scripts for the questions debtors always ask
You do not have to be cold or unhelpful. The goal is to be warm, say clearly that the question belongs to the attorney, and make sure the attorney actually gets it.
“Should I file Chapter 7 or Chapter 13?”
“That is exactly the right question, and it is one only your attorney can answer, because it depends on your income, your property, and your goals. I am writing it down so the attorney sees it before your meeting. What I can do is make sure we have every number they need to give you a good answer.”
“Will I lose my car (or my house)?”
“I understand how important that is, and I am not able to tell you what will happen, because that is legal advice. Your attorney can. I have noted your loan information and that this is a priority for you so they can address it first.”
“Can I keep my tax refund?”
“Whether a refund is protected depends on the law where you live and the timing, and that is a question for your attorney. I will make sure the petition shows what you expect to receive and when, so they can advise you.”
“Should I pay this one creditor before I file?”
“Please do not make that decision on your own, and please do not make any large payments or transfers before you talk to your attorney. Payments made shortly before filing can create problems. I will flag this for them today.”
“What should I put down as the value of this?”
“Good question. I can show you where to find a reliable figure and write down the source. The attorney will review it before anything is filed.” (This one is a factual question you can help with. See How to Value Property on a Bankruptcy Petition.)
Advertising, titles, and the word “certified”
UPL problems often begin in the marketing, not in the work.
- Do not use the word “legal” in your business name or advertising. Section 110(f) forbids bankruptcy petition preparers from advertising under “legal” or similar terms, and it is smart practice for anyone in this field. Avoid “legal services,” “legal document,” and “attorney” in how you describe what you do.
- Say you are not an attorney in your marketing materials and on your website.
- Never call yourself “licensed.” There is no federal or state license for preparing bankruptcy petitions.
- Be precise about credentials. A training certificate shows you completed training. It is not a license, and no certificate turns a non-attorney into someone allowed to give legal advice. Avoid claiming to be “accredited” unless a recognized accrediting body actually accredited the program.
Five habits that keep you safe
- Let the attorney own the client relationship. The debtor is the attorney's client. Your communication should support, never replace, the attorney's.
- Put everything in writing. A short “Issues for attorney” note with each draft, listing questions you flagged and why, is both a safeguard and a selling point to the firm. See How VBAs Can Help Protect Their Attorneys.
- Never sign or file for the attorney, and never communicate with the court as if you were counsel.
- Use a written agreement with each attorney describing your role, confidentiality, and that all work is subject to attorney review.
- When in doubt, ask the attorney first. A thirty-second question protects both of you.
Learn the drafting side the right way. Our Chapter 7 & 13 Bankruptcy Petition Specialist Certification trains you to prepare accurate petitions for attorneys, and to recognize and flag the issues that belong in front of a lawyer. Start with the free petition preparer training guide if you want a no-risk look first.
Frequently asked questions
Is a virtual bankruptcy assistant the same as a bankruptcy petition preparer?
Not legally. A VBA works for an attorney, who files and signs the petition. A bankruptcy petition preparer works directly for the debtor and is regulated by §110. See our comparison linked above. Some people do both, and each role has its own rules.
Can I talk to the debtor directly if I work for an attorney?
Usually yes, for intake and information gathering, as long as the attorney approves and you stay on the facts side of the line. Many firms prefer that the attorney handle all advice conversations and that you handle document requests. Follow the firm's preference.
Does certification protect me from UPL claims?
No. Training makes you better at the job and shows attorneys you are serious. It does not change what you are legally permitted to do. See Is Bankruptcy Petition Certification Worth It?
What should I do if a debtor keeps pressing me for advice?
Repeat the script kindly, tell the attorney the debtor has questions that need an answer, and suggest the debtor call the office. Do not give in to be helpful.
This article is general education for bankruptcy professionals, not legal advice. Unauthorized practice of law rules differ by state, and court rules and statutes change. Confirm the rules in your state and with your supervising attorney. Questions about 713 Training? See our FAQ.