Knowing disregard of bankruptcy law or rule
Official text prohibited actmental stateif conditionpenaltylegal term
(a) Definitions. In this section—
(1) the term "bankruptcy petition preparer" means a person, other than the debtor's attorney or an employee of such an attorney, who prepares for compensation a document for filing; and
(2) the term "document for filing" means a petition or any other document prepared for filing by a debtor in a United States bankruptcy court or a United States district court in connection with a case under title 11.
(b) Offense. If a bankruptcy case or related proceeding is dismissed because of a knowing attempt by a bankruptcy petition preparer in any manner to disregard the requirements of title 11, United States Code, or the Federal Rules of Bankruptcy Procedure, the bankruptcy petition preparer shall be , imprisoned not more than 1 year, or both.
History: (Added Pub. L. 103–394, title III, §312(a)(1)(B), Oct. 22, 1994, 108 Stat. 4140 (PDF, 6.5 MB); amended Pub. L. 109–8, title XII, §1220, Apr. 20, 2005, 119 Stat. 195.)
Simplified explanation
It is a federal crime for a bankruptcy petition preparer (a paid non-lawyer who prepares bankruptcy filings) to knowingly ignore bankruptcy law or court rules if that causes the case to be dismissed. The debtor's own attorney and the attorney's employees are not petition preparers.