Mary D Henry

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLUMBIA
In re
MARY D. HENRY,
Debtor.
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Case No. 10-00160
(Chapter 7)
Not for Publication in
West’s Bankruptcy Reporter
MEMORANDUM DECISION AND
ORDER DIRECTING FRANCES SIMMONS TO DISGORGE FEES
Frances Simmons, a bankruptcy petition preparer,
acknowledges that she has received $475 for document preparation
services in this case. 1 	The court entered an order on March 23,
2009, stating:
the debtor’s statement of financial affairs reflects
that the document was prepared by Ms. Simmons, yet Ms.
Simmons neglected to sign the document. 	The clerk’s
office issued a notice advising the debtor and Ms.
Simmons of this deficiency, yet the error remains
uncorrected. 	Similarly, the deficiency notice advised
the debtor and Ms. Simmons that Ms. Simmons had not
signed the debtor’s schedules. 	If Ms. Simmons helped
in the preparation of the debtor’s schedules, she was
1 	Ms. Simmons apparently filed the debtor’s petition (as
the file includes a copy of her driver’s license produced at the
time of filing). 	This presents an issue whether Ms. Simmons
collected or received payment from the debtor or on behalf of the
debtor for the filing fee in violation of 11 U.S.C. § 109(g), but
this order does not address that issue.
The document below is hereby signed.
Signed: May 25, 2010.
_____________________________
S. Martin Teel, Jr.
United States Bankruptcy Judge
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required to sign those schedules. 	Alternatively, if
Ms. Simmons did not assist in the preparation of the
schedules, it raises a question of whether the agreed
upon fee of $475 was reasonable. 	In light of the
foregoing, it is . . .
ORDERED that within 14 days after entry of this
order, the debtor shall file an amended Statement of
Financial Affairs and amended schedules to include the
petition preparer’s signature. 	It is further
ORDERED that if Ms. Simmons fails to comply with
the foregoing, she is directed to show cause, by a
writing filed with this court, why any fee she has
received in connection with this bankruptcy case ought
not be disgorged.
When Ms. Simmons failed to respond to that order, a further order
was entered 17 days later, on April 9, 2010, which directed that
it was:
ORDERED that on May 4, 2010, at 9:30 a.m., Ms. Simmons
shall appear at a hearing before this court to show
cause, if any she has, why any fee she may have
received in connection with this bankruptcy case ought
not be disgorged.
Ms. Simmons failed to appear at the hearing of May 4, 2010.
Amended schedules and an amended statement of financial affairs
have not been filed.
A petition preparer is supposed to be only a scrivener,
putting to paper the information a debtor requests be put to
paper. 2 	A petition preparer is not authorized to practice law,
2 	The petition the debtor filed was defective for failure
to provide an answer on the petition to an inquiry eliciting
statistical/administrative information. 	When this defect was not
corrected in response to an order to show cause, the case was
dismissed on April 30, 2010. 	A competent petition preparer would
have inquired of the debtor what response the debtor wished to
make to the inquiry.
2
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and cannot be compensated for engaging in the unauthorized
practice of law. 3 	Compensation is limited to being a mere
scrivener. 	Even if Ms. Simmons had prepared the schedules and
the statement of financial affairs, only nominal compensation was
warranted, and surely not $475. 4 	In any event, Ms. Simmons has
failed to respond twice to orders of the court directing her to
show cause why her fees ought not be disgorged. 	Under the
circumstances, disgorgement of the entire fee is warranted. 	It
is thus
ORDERED that by June 2, 2010, Frances Simmons shall disgorge
$475.00 by causing the Office of the United States Trustee to
receive by June 2, 2010, a payment to the debtor in the form of a
certified or cashier’s check or U.S. Postal Service money order.
It is further
ORDERED that by June 4, 2010, Frances Simmons shall file a
certificate reciting that she has complied with the requirement
of the foregoing paragraph. 	It is further
3 	Ms. Simmons filed a motion to vacate the order of
dismissal in this case. 	That constitutes the unauthorized
practice of law, and Ms. Simmons is admonished that she will be
in violation of the law if she engages in such conduct in the
future. 	(On its own motion, the court has vacated the order of
dismissal because the debtor filed a corrected petition.)
4 	The schedules and the statement of financial affairs were
not complicated. 	The debtor’s schedules listed no property (not
even wearing apparel), scheduled only 15 creditors, and scheduled
only Social Security payments as income. 	The Statement of
Financial Affairs answered “None” to each and every question.
3
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ORDERED that the United States Trustee shall transmit the
disgorgement payment to the debtor by hand or by mail, and file
notice of such transmittal.
[Signed and dated above.]
Copies to:
Debtor
Frances Simmons
11101 Jade Court
Hagerstown, MD 21742
Office of the U.S. Trustee
115 South Union St.
Suite 210 Plaza Level
Alexandria, VA 22314
4	O:\TEEL\Judge Temp Docs\Henry (Mary) Order for Petition Preparer to Disgorge Fees
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