New § 528. Requirements
for debt relief agencies
A "debt relief agency," which is defined by §101(12A)
to be anyone who provides bankruptcy assistance for money,
specifically including "bankruptcy petition preparers"
defined in §110(a)(1), and
presumably includes attorneys, but does not include "any person
that is an officer, director, employee or agent" of the debt
relief agency, nonprofit organizations, creditors, or authors of
copyrighted materials, must:
- Within 5 days after the first date that the agency provides
bankruptcy assistance services, but prior to a petition being
filed, execute a written contract that explains the services
that the agency will provide and the fees, charges, and terms of
payment and provide the assisted person with a copy of the
contract. §528(a)(1)
- Disclose in advertisements that services are with respect to
bankruptcy relief. §528(a)(2)
- Include the statement "We are a debt relief agency. We
help people file for bankruptcy relief under the Bankruptcy
Code" in advertisements. §528(b)
Text appearing below in blue is the same in
H.R.333 and S.420. Text
in maroon is only in H.R.333. Text in
green is only in S.420. |
11 USC § 528.
Requirements for debt relief agencies
(a) A debt relief agency shall--
(1) not later than 5 business days after the
first date such agency provides any bankruptcy assistance services to an
assisted person, but prior to such assisted person's petition under this
title being filed, execute a written contract with such assisted person
that explains clearly and conspicuously--
(A) the services such agency will provide to
such assisted person; and
(B) the fees or charges for such services,
and the terms of payment;
(2) provide the assisted person with a copy of
the fully executed and completed contract;
(3) clearly and conspicuously disclose in any
advertisement of bankruptcy assistance services or of the benefits of
bankruptcy directed to the general public (whether in general media,
seminars or specific mailings, telephonic or electronic messages, or
otherwise) that the services or benefits are with respect to bankruptcy
relief under this title; and
(4) clearly and conspicuously using the
following statement: "We are a debt relief agency. We help people
file for bankruptcy relief under the Bankruptcy Code." or a
substantially similar statement.
(b)
(1) An advertisement of bankruptcy assistance
services or of the benefits of bankruptcy directed to the general public
includes--
(A) descriptions of bankruptcy assistance in
connection with a chapter 13 plan whether or not chapter 13 is
specifically mentioned in such advertisement; and
(B) statements such as "federally
supervised repayment plan" or "Federal debt restructuring
help" or other similar statements that could lead a reasonable
consumer to believe that debt counseling was being offered when in
fact the services were directed to providing bankruptcy assistance
with a chapter 13 plan or other form of bankruptcy relief under this
title.
(2) An advertisement, directed to the general
public, indicating that the debt relief agency provides assistance with
respect to credit defaults, mortgage foreclosures, eviction proceedings,
excessive debt, debt collection pressure, or inability to pay any
consumer debt shall--
(A) disclose clearly and conspicuously in
such advertisement that the assistance may involve bankruptcy relief
under this title; and
(B) include the following statement: "We
are a debt relief agency. We help people file for bankruptcy relief
under the Bankruptcy Code," or a substantially similar statement.
|
Doney
& Associates Home Page