A bankruptcy petition preparer is a non-attorney who prepares bankruptcy documents for a fee. The role is defined and regulated by federal law — 11 U.S.C. §110 — which spells out exactly what a preparer may do, what they may not do, and what happens when they cross the line. If you are researching this role because you want to hire someone, or because you are considering it as a career, this page covers both.
The Legal Definition
Section 110(a)(1) defines a bankruptcy petition preparer as a person, other than an attorney for the debtor or an employee of such an attorney under the direct supervision of that attorney, who prepares for compensation a document for filing in a bankruptcy case.
Three elements matter in that sentence, and each one does real work:
Non-attorney. Lawyers preparing documents for their own clients are not petition preparers — they are practicing law. Neither are their supervised employees.
For compensation. Helping a family member fill out forms for free does not make you a petition preparer. Taking money for it does.
A document for filing. This covers the petition itself and the schedules, statements, and related documents filed with the bankruptcy court.
In plain terms: a petition preparer is a typing and document-preparation service for people filing bankruptcy without a lawyer. The debtor is representing themselves. The preparer puts their information into the correct forms.
What a Petition Preparer Can Do
The permitted work is narrower than most people expect, but it is genuinely valuable — bankruptcy forms are long, technical, and unforgiving of errors. A preparer may:
✓ Type the debtor's information into the official bankruptcy forms
✓ Transcribe information the debtor provides, accurately and completely
✓ Supply the debtor with copies of the official forms and general filing instructions published by the court
✓ Charge a reasonable fee for that preparation work
Notice what these have in common: every one is a clerical act. The debtor decides; the preparer records.
What a Petition Preparer Cannot Do
This is the part that trips people up, and it is where most enforcement actions come from. Section 110(e)(2) prohibits a preparer from offering any legal advice, and the statute gives specific examples. A preparer may not advise a debtor about:
✗ Whether to file a bankruptcy petition at all
✗ Whether filing under chapter 7, 11, 12, or 13 is the right choice
✗ Whether the debtor's debts will be discharged
✗ Whether the debtor will be able to keep a home, car, or other property
✗ Tax consequences, or whether tax claims are dischargeable
✗ Whether to reaffirm a debt with a creditor
✗ How to characterize the nature of the debtor's property or debts
✗ Bankruptcy procedures and rights generally
That last item is broad on purpose. Questions that feel like harmless customer service — “which chapter should I file?”, “will I lose my car?”, “should I list this debt?” — are all legal advice. The correct answer is always to refer the debtor to an attorney.
Two further restrictions are easy to overlook. A preparer may not sign a document on the debtor's behalf (§110(e)(1)), and may not use the word “legal” or any similar term in advertising (§110(f)) — that includes advertising under a heading containing the word.
The Rules Every Preparer Must Follow
Beyond the prohibitions, §110 imposes affirmative duties. A preparer must:
Sign every document and print their name and address (§110(b)(1)). Petition preparers do not work anonymously; they are identified on the filing.
Give the debtor a written notice before doing any work (§110(b)(2)). This is an official court form, signed by both the preparer and the debtor, stating plainly that the preparer is not an attorney and may not give legal advice.
Include their identifying number on documents they prepare (§110(c)).
Give the debtor a copy of every document no later than the time the debtor signs it (§110(d)).
Never handle court filing fees (§110(g)). A preparer may not collect or pay the court's filing fee for the debtor. The debtor pays the court directly.
Disclose their fees to the court (§110(h)), including any fee received in the twelve months before filing.
What Petition Preparers Charge
Section 110(h) requires fees to be disclosed and reasonable, and a bankruptcy court can review any preparer's fee — ordering excessive amounts refunded to the debtor. Many judicial districts publish a presumptive maximum fee, above which a preparer has to justify the charge.
Those limits vary meaningfully by district and are revised over time, so there is no single national figure worth quoting. If you are preparing petitions for consumers, the local bankruptcy court's standing orders are the authority, and checking them is not optional.
This fee ceiling is the single biggest economic constraint on the role, and it is a large part of why many people who draft petitions professionally choose a different path — more on that below. For the numbers side, see How Much Do Bankruptcy Petition Preparers Make?
Penalties for Getting It Wrong
Section 110 has real teeth. A court may fine a preparer for each failure to comply with the signature, notice, identification, copy, advertising, filing-fee, and disclosure requirements — and may increase those fines where the conduct is willful. Where a preparer commits a fraudulent, unfair, or deceptive act, §110(i) allows the court to order the preparer to pay the debtor's actual damages plus a statutory amount, along with attorney's fees and costs. Courts can also disallow and order the turnover of excessive fees, and enjoin a preparer from operating altogether.
Specific dollar amounts in the Bankruptcy Code are adjusted periodically, so anyone working in this role should read the current text of the statute rather than rely on a figure quoted in an article.
Petition Preparer vs. Virtual Bankruptcy Assistant
Here is the distinction that matters most if you are weighing this as a career, and it is the one the general-reference pages about §110 never explain.
A bankruptcy petition preparer works directly for the debtor. Because no attorney stands between the preparer and the consumer, §110 applies in full: the advice prohibitions, the fee caps, the disclosure duties, the penalties.
A virtual bankruptcy assistant works for the attorney. The law firm represents the debtor, the attorney reviews and files the petition, and the assistant is doing skilled drafting work as part of the firm's process. The economics are different, the work is repeat business from firms rather than one-off consumer jobs, and the §110 restrictions that constrain consumer-facing preparers are not the governing framework.
Most people who draft bankruptcy petitions for a living choose the second path. We wrote a full comparison here: The Difference Between a Bankruptcy Assistant and a Petition Preparer, and a primer on the role itself in What is a Virtual Bankruptcy Assistant?
Is This a Viable Career?
Yes — provided you understand which version of the job you are signing up for, and you can actually draft an accurate petition.
The skill is the barrier, not the credential. There is no license, no law degree, and no paralegal certificate required to prepare bankruptcy documents. What is required is the ability to produce schedules and a means test that survive review, because an attorney will not send repeat work to someone whose drafts create problems, and a bankruptcy court will not overlook errors on a pro se filing.
That is a learnable skill. If you want the step-by-step version of the path, read How to Become a Bankruptcy Petition Preparer, or look at what structured bankruptcy petition preparer training covers. Once you are working, there is also a professional association for people in the field — see What Is NAVBA?
Common Questions
Do you need a license to be a bankruptcy petition preparer? No. Federal law does not require a license or any particular credential. It regulates conduct instead — what you may do, what you must disclose, and what you may never advise on.
Can a petition preparer give legal advice? No, under any circumstances. Section 110(e)(2) prohibits it outright, and the statute's list of examples is deliberately broad.
Is a petition preparer the same as a paralegal? No. A paralegal typically works under an attorney's supervision. A petition preparer, by definition, does not.
Can a petition preparer file the case for the debtor? No. A preparer may not sign documents for the debtor or pay the court's filing fee. The debtor files their own case.
This article explains how federal law defines and regulates bankruptcy petition preparers. It is general information, not legal advice. Requirements, fee limits, and local procedures vary by judicial district and change over time — consult the current text of 11 U.S.C. §110 and your local bankruptcy court's rules, or a licensed attorney, before acting.