Enforcement Problems

We have seen  a new enforcement effort on the part of the United States Trustee's office to force the recommended
fees for preparation lower.  In some cases as low as $50.00. To make this effort work they are dependant upon Bankruptcy Preparers not answering complaints against them. That means that all allegations against a preparer that are not answered are considered TRUE.  The sample case listed below is a prime example of what would have been an easy case to win had the preparer merely  responded and denied that the fee was unreasonable. Or even worse that he did not give legal advice!

You do not want to be part of this efforts. Reasonable fees are reasonable fees! Not some low ball fee that was
thrown against a preparer that did not defend herself. A classic example is shown on the attached case.
Please read it and realize that the Petition preparer did not respond or show up for any of the hearings. (THE CASE SAMPLE) This
sample is a pdf format file that you should download and review. Please note that there are several cases included in the sample because
 the trustee's office like to file multiples at the same time. (The 10 pac. see lesson 4)

Recently we have had District Bankruptcy Judges setting fees that are artificially low. These low fees are meant to put preparers out of business.
Keep in mind that the guidelines for setting fees can ONLY be established by the US Supreme Court or the Judicial Conference and no one else.
It is very important that you remember what reasonable fees means. We will be seeing more on this issue.

 

If this has happened to you, PLEASE contact a lawyer or contact us. For free sample legal review call ASAP at 419-621-9388.

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