Petition Preparers Cannot Charge Excessive Fees for Simple Chapter 7 Consumer Cases

A bankruptcy court did not abuse its discretion in determining that a bankruptcy petition preparer (BPP), who is not a licensed attorney and who does not work under the supervision of a licensed attorney, charged fees to her clients that were excessive, the U.S. District Court for the Northern District of West Virginia held May 18, affirming (Kuhns v. United States Trustee).

Judge John Preston Bailey upheld the bankruptcy court’s decision ordering the BPP to turn over amounts in excess of $150 to the debtors in the above-captioned consolidated bankruptcies. The district court agreed with the bankruptcy court ...