In re Boatwright

603 B.R. 2
CourtUnited States Bankruptcy Court, D. South Carolina
DecidedJuly 16, 2019
DocketC/A No. 19-00684-HB
StatusPublished
Cited by1 cases

This text of 603 B.R. 2 (In re Boatwright) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Boatwright, 603 B.R. 2 (S.C. 2019).

Opinion

Helen E. Burris, US Bankruptcy Judge

THIS MATTER is before the Court on an Order and Rule to Appear and Show Cause entered on April 11, 2019, directing Sean C. Ferrero of IWILLSAVEYOURHOME.COM to appear before the Court to explain any involvement in the bankruptcy cases of Amanda T. Boatwright ("Debtor") and to show cause why he has not violated 11 U.S.C. § 110.1 Due notice *4was given and a hearing was held on June 27, 2019. Debtor was present at the hearing and Ferrero appeared by telephone. The Order Granting Request to Appear at Hearing by Telephone and Giving Notice of Scope of Hearing is incorporated by reference.2 Since that Order, both Debtor and Ferrero submitted additional statements and documentation for the Court's consideration.

FACTS

IWILLSAVEYOURHOME.COM is an unincorporated business owned and operated by Ferrero. Debtor contacted Ferrero in September 2018 for assistance to avoid the loss of her home after it was scheduled to be sold at a foreclosure sale. Documents from Ferrero to Debtor include a conditional guarantee that Debtor will not lose her home or be evicted. In an email dated September 30, 2018 with the subject line "Oct 1st - STOP THE SALE PAPERS - Amanda & Otis Boatwright," Ferrero provided Debtor completed documents needed to initiate a Chapter 13 bankruptcy in South Carolina. Ferrero instructed Debtor to review and sign the documents and informed her of the filing fee and the Court's address for filing. Debtor filed the petition the next day, resulting in Case No. 18-05014-hb. On November 6, 2018, that case was dismissed with prejudice for one year as to any reorganization chapter for failure to file Schedules and Statements.3

In late January 2019, Debtor informed Ferrero that her home was again subject to a foreclosure sale. On February 3, 2019, he provided her completed bankruptcy forms to again stop the sale by filing a Chapter 13 bankruptcy case. Debtor filed this case the next day, which was dismissed on February 6, 2019, for violation of the prior prejudice order. Neither petition disclosed Ferrero's involvement nor indicated that he assisted Debtor with preparing a bankruptcy petition. No Bankruptcy Petition Preparer's Notice, Declaration, and Signature (Official Form 119) was completed for filing by Ferrero. Rather, Debtor's bankruptcy petitions were completed to indicate she was filing pro se .

On February 12, 2019, Debtor informed Ferrero of a Rule to Show Cause hearing scheduled by the Court as a result of the filings and he advised by text "U [sic] don't have to go to that Amanda." As a result of Debtor's repeat filings, the prejudice period barring her from refiling under any reorganization chapter was extended to January 6, 2020.

Debtor paid Ferrero a total of $6,000.00 in installments that began in September 2018. Ferrero asserts any failure by Debtor to realize any benefit from his services was because she failed to provide documents to proceed with a loan modification. The Court gave Ferrero an opportunity to detail the work performed for Debtor in exchange for the $6,000.00 in fees and to provide evidence of valuable services. From the record it is not clear what work, if any, Ferrero performed for Debtor.

APPLICABLE LAW

This Court has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157(a) and 1334(b). This matter is a core proceeding pursuant to 28 U.S.C. § 157(b)(2). Venue is proper pursuant to 28 U.S.C. §§ 1408 and 1409.

Section 110 of the Bankruptcy Code defines "bankruptcy petition preparer"

*5("BPP") as "a person, other than an attorney for the debtor or an employee of such attorney under the direct supervision of such attorney, who prepares for compensation a document for filing" by the debtor in connection with his bankruptcy case. 11 U.S.C. § 110(a)(1). Section 110 provides rules and guidelines BPPs must follow. A BPP must disclose his existence and participation in a bankruptcy case. 11 U.S.C. § 110(b)(1), (c)(1). A BPP must disclose his Social Security number on every document prepared for filing as well as sign the document and print his name and address on the document. 11 U.S.C. § 110(b)(1) (c). A BPP is also required to disclose all fees received from the debtor within 12 months before the petition was filed and any remaining unpaid fee charged to the debtor. 11 U.S.C. § 110(h)(2).

A BPP must provide written notice informing the debtor that he is not an attorney and may not give legal advice or practice law. 11 U.S.C. § 110(b)(2) ; see also 11 U.S.C. § 110(e)(2)(A) (prohibiting a BPP from providing legal advice). Legal advice includes, inter alia , advising the debtor on whether to file a petition or commence a bankruptcy case, whether the debtor will be able to retain his or her home after commencing a bankruptcy case, how to characterize the nature of the debtor's interests in property or the debtor's debts, and bankruptcy procedures and rights. 11 U.S.C. § 110(e)(2)(B) ; see also 2 Collier on Bankruptcy ¶ 110.12 (16th ed.

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Related

Judith Ann Corey
D. South Carolina, 2025

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Bluebook (online)
603 B.R. 2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-boatwright-scb-2019.