Knowing Disregard of Bankruptcy Laws18 U.S.C.
This section punishes a bankruptcy petition preparer, i.e.,
bankruptcy petition or typing mills, whose knowing disregard of the
Bankruptcy Code or Rules causes a bankruptcy petition or proceeding to be
dismissed. A "bankruptcy petition preparer" is anyone, other than the
debtor's attorney or that attorney's employee, who for compensation prepares
bankruptcy documents for filing.|
18 U.S.C. § 156(b) provides:
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 fined...imprisoned not more than 1 year, or both.
This offense is a Class A misdemeanor. The term "related
proceeding" covers all proceedings in bankruptcy court. The acts proscribed
in this statute need only be done knowingly. They do not have to be done
NOTE: Civil fines and injunctive relief against bankruptcy petition
preparers who do not disclose their name, address, social security number,
and their compensation for preparing documents are included in 11 U.S.C.
§ 110. The civil fines and injunctive relief under 11 U.S.C.
are available for either an intentional or negligent disregard of the
provisions of the Bankruptcy Code.
[cited in USAM 9-41.001]