AMENDMENTS TO DISCOURAGE ABUSIVE BANKRUPTCY FILINGS.

SEC. 221. AMENDMENTS TO DISCOURAGE ABUSIVE BANKRUPTCY FILINGS. Section 110 of title 11, United States Code, is amended—(1) in subsection (a)(1), by striking “or an employee of an attorney” and inserting “for the debtor or an employee of such attorney under the direct supervision of such attorney”;(2) in subsection (b)—(A) in paragraph (1), by adding at the end the following: “If a bankruptcy petition preparer is not an individual, then an officer, principal, responsible person, or partner of the bankruptcy petition preparer shall be required to—“(A) sign the document for filing; and“(B) print on the document the name and address of that officer, principal, responsible person, or partner.”; and(B) by striking paragraph (2) and inserting the following:“(2)(A) Before preparing any document for filing or accepting any fees from a debtor, the bankruptcy petition preparer shall provide to the debtor a written notice which shall be on an official form prescribed by the Judicial Conference of the United States in accordance with rule 9009 of the Federal Rules of Bankruptcy Procedure.“(B) The notice under subparagraph (A)—“(i) shall inform the debtor in simple language that a bankruptcy petition preparer is not an attorney and may not practice law or give legal advice; “(ii) may contain a description of examples of legal advice that a bankruptcy petition preparer is not authorized to give, in addition to any advice that the preparer may not give by reason of subsection (e)(2); and“(iii) shall—“(I) be signed by the debtor and, under penalty of perjury, by the bankruptcy petition preparer; and“(II) be filed with any document for filing.”;(3) in subsection (c)—(A) in paragraph (2)—119 STAT. 60 (i) by striking “(2) For purposes” and inserting “(2)(A) Subject to subparagraph (B), for purposes”; and(ii) by adding at the end the following:“(B) If a bankruptcy petition preparer is not an individual, the identifying number of the bankruptcy petition preparer shall be the Social Security account number of the officer, principal, responsible person, or partner of the bankruptcy petition preparer.”; and(B) by striking paragraph (3);(4) in subsection (d)—(A) by striking “(d)(1)” and inserting “(d)”; and(B) by striking paragraph (2); (5) in subsection (e)—(A) by striking paragraph (2); and(B) by adding at the end the following:“(2)(A) A bankruptcy petition preparer may not offer a potential bankruptcy debtor any legal advice, including any legal advice described in subparagraph (B).“(B) The legal advice referred to in subparagraph (A) includes advising the debtor—“(i) whether—“(I) to file a petition under this title; or“(II) commencing a case under chapter 7, 11, 12, or 13 is appropriate; “(ii) whether the debtor’s debts will be discharged in a case under this title;“(iii) whether the debtor will be able to retain the debtor’s home, car, or other property after commencing a case under this title;“(iv) concerning—“(I) the tax consequences of a case brought under this title; or“(II) the dischargeability of tax claims;“(v) whether the debtor may or should promise to repay debts to a creditor or enter into a reaffirmation agreement with a creditor to reaffirm a debt;“(vi) concerning how to characterize the nature of the debtor’s interests in property or the debtor’s debts; or“(vii) concerning bankruptcy procedures and rights.”; (6) in subsection (f)—(A) by striking “(f)(1)” and inserting “(f)”; and(B) by striking paragraph (2); (7) in subsection (g)—(A) by striking “(g)(1)” and inserting “(g)”; and(B) by striking paragraph (2); (8) in subsection (h)—(A) by redesignating paragraphs (1) through (4) as paragraphs (2) through (5), respectively;(B) by inserting before paragraph (2), as so redesignated, the following:“(1) The Supreme Court may promulgate rules under section 2075 of title 28, or the Judicial Conference of the United States may prescribe guidelines, for setting a maximum allowable fee chargeable by a bankruptcy petition preparer. A bankruptcy petition preparer shall notify the debtor of any such maximum amount before preparing any document for filing for a debtor or accepting any fee from the debtor.”;119 STAT. 61(C) in paragraph (2), as so redesignated—(i) by striking “Within 10 days after the date of the filing of a petition, a bankruptcy petition preparer shall file a” and inserting “A”;(ii) by inserting “by the bankruptcy petition preparer shall be filed together with the petition,” after “perjury”; and(iii) by adding at the end the following: “If rules or guidelines setting a maximum fee for services have been promulgated or prescribed under paragraph (1), the declaration under this paragraph shall include a certification that the bankruptcy petition preparer complied with the notification requirement under paragraph (1).”; (D) by striking paragraph (3), as so redesignated, and inserting the following:“(3)(A) The court shall disallow and order the immediate turnover to the bankruptcy trustee any fee referred to in paragraph (2) found to be in excess of the value of any services—“(i) rendered by the bankruptcy petition preparer during the 12-month period immediately preceding the date of the filing of the petition; or“(ii) found to be in violation of any rule or guideline promulgated or prescribed under paragraph (1).“(B) All fees charged by a bankruptcy petition preparer may be forfeited in any case in which the bankruptcy petition preparer fails to comply with this subsection or subsection (b), (c), (d), (e), (f), or (g).“(C) An individual may exempt any funds recovered under this paragraph under section 522(b).”; and(E) in paragraph (4), as so redesignated, by striking “or the United States trustee” and inserting “the United States trustee (or the bankruptcy administrator, if any) or the court, on the initiative of the court,”;(9) in subsection (i)(1), by striking the matter preceding subparagraph (A) and inserting the following:“(i)(1) If a bankruptcy petition preparer violates this section or commits any act that the court finds to be fraudulent, unfair, or deceptive, on the motion of the debtor, trustee, United States trustee (or the bankruptcy administrator, if any), and after notice and a hearing, the court shall order the bankruptcy petition preparer to pay to the debtor—”;(10) in subsection (j)—(A) in paragraph (2)—(i) in subparagraph (A)(i)(I), by striking “a violation of which subjects a person to criminal penalty”;(ii) in subparagraph (B)—(I) by striking “or has not paid a penalty” and inserting “has not paid a penalty”; and(II) by inserting “or failed to disgorge all fees ordered by the court” after “a penalty imposed under this section,”;(B) by redesignating paragraph (3) as paragraph (4); and(C) by inserting after paragraph (2) the following:“(3) The court, as part of its contempt power, may enjoin a bankruptcy petition preparer that has failed to comply with 119 STAT. 62 a previous order issued under this section. The injunction under this paragraph may be issued on the motion of the court, the trustee, or the United States trustee (or the bankruptcy administrator, if any).”; and(11) by adding at the end the following:“(l)(1) A bankruptcy petition preparer who fails to comply with any provision of subsection (b), (c), (d), (e), (f), (g), or (h) may be fined not more than $500 for each such failure.“(2) The court shall triple the amount of a fine assessed under paragraph (1) in any case in which the court finds that a bankruptcy petition preparer—“(A) advised the debtor to exclude assets or income that should have been included on applicable schedules;“(B) advised the debtor to use a false Social Security account number;“(C) failed to inform the debtor that the debtor was filing for relief under this title; or“(D) prepared a document for filing in a manner that failed to disclose the identity of the bankruptcy petition preparer.“(3) A debtor, trustee, creditor, or United States trustee (or the bankruptcy administrator, if any) may file a motion for an order imposing a fine on the bankruptcy petition preparer for any violation of this section.“(4)(A) Fines imposed under this subsection in judicial districts served by United States trustees shall be paid to the United States trustee, who shall deposit an amount equal to such fines in a special account of the United States Trustee System Fund referred to in section 586(e)(2) of title 28. Amounts deposited under this subparagraph shall be available to fund the enforcement of this section on a national basis.“(B) Fines imposed under this subsection in judicial districts served by bankruptcy administrators shall be deposited as offsetting receipts to the fund established under section 1931 of title 28, and shall remain available until expended to reimburse any appropriation for the amount paid out of such appropriation for expenses of the operation and maintenance of the courts of the United States.”.