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bankruptcy petition preparer

A bankruptcy discharge  is an order issued by the bankruptcy court that permanently releases the debtor from personal liability for certain specified debts . Once granted, the debtor is no longer legally obligated to pay those debts. In most cases, the discharge is entered automatically at the end of the case unless a creditor , trustee , or the U.S. Trustee  objects.

A discharge also creates a discharge injunction , which prohibits creditors from taking any collection action on discharged debts, including lawsuits , garnishments , or direct contact with the debtor. Creditors who violate the discharge injunction may be sanctioned by the court.

Not all debts are dischargeable. Common non-dischargeable debts include certain taxes , domestic support obligations, most student loans, debts for fraud or willful injury, and criminal fines. In addition, valid liens that were not avoided during the bankruptcy case generally survive the discharge, meaning secured creditors may still enforce their liens against the collateral .

A discharge may be revoked by the court in cases of fraud or misconduct, and a debtor may voluntarily repay any discharged debt even though repayment cannot be legally compelled.

Bankruptcy petition preparer is a non-lawyer who, for a fee, prepares bankruptcy documents for debtors to file with the bankruptcy court . Bankruptcy petition preparers are regulated under 11 U.S.C. § 110. Bankruptcy petition preparers may be paralegals , they cannot give legal advice, represent debtors in court, sign documents on a debtor’s behalf, or accept payments from third parties . Their role is limited to typing and filing documents, and they may charge only a reasonable fee. They are also prohibited from advertising in a way that suggests they provide legal services.

If a bankruptcy petition preparer violates the law or causes harm, through negligence , fraud, unfair and/or deceptive acts, or intentionally disregarding requirements , the court may order them to pay damages , refund service fees, cover the debtor’s attorney’s fees incurred in seeking relief. Courts may also impose fines or bar them from further work if misconduct is found.

[Last reviewed in August of 2025 by the Wex Definitions Team
] 

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