United States Trustee v. Womack (In Re Paskel)

201 B.R. 511, 1996 Bankr. LEXIS 1306, 1996 WL 599114
United States Bankruptcy Court, E.D. Arkansas·Decided September 17, 1996·No. Bankruptcy No. 96-43288 S, Adv. No. 96-4071·Published·Cited by 22 cases

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

MARY D. SCOTT, Bankruptcy Judge.

THIS CAUSE is before the Court upon the trial of the Complaint by the United States Trustee for injunction and sanctions pursuant to 11 U.S.C. § 110 against Thomas Womack, a bankruptcy petition preparer. This adversary proceeding was filed on April 26,1996, pursuant to section 110 of the Bankruptcy Code requesting imposition of sanctions and an injunction against Womack for improperly filing bankruptcy petitions and other documents on behalf of debtors. Wom-ack included in his answer a counterclaim against the U.S. Trustee and other persons, a motion to dismiss, a request that debtor’s “Caseworker” be sanctioned, that all fees taken from an attorney Michael V. Smith and other black attorneys be returned, that the U.S. Trustee be enjoined from “Jim Crow-ism” acts; and that a transcription be quashed. Inasmuch as Womack failed in all procedural respects to name or serve the counterclaim defendants, the Court dismissed the counterclaim against these defendants. The Court also denied Womack’s request for default against the U.S. Trustee, denied a motion to suppress, 1 and dismissed other unrelated claims and assertions. 2

The Court has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157(a), 1334. This is a “core proceeding” within the meaning of 28 U.S.C. § 157(b) as exemplified by 28 U.S.C. § 157(b)(A) such that the Court *515 has the authority to enter a final order in this proceeding. See generally In re Interpreting 11 U.S.C. § 110 Which Governs Conduct of Non-Lawyer Bankruptcy Petition Preparers and Delineating the Relationship, Powers and Functions of the Bankruptcy Court and the District Court under the Statute, 198 B.R. 604 (C.D.Cal.1996). 3

Section 110 of the Bankruptcy Code provides for injunctive relief and monetary sanctions against “petition preparers” 4 who violate the provisions of that section. Specifically, sections 110(b) through (g) impose affirmative obligations on preparers, including the requirement to identify themselves, place their name, address and social security number on the petition, file a declaration of the fee paid, and provide the debtor with a copy of the documents. Failure to comply with these obligations may subject the preparer to a sanction of not more than $500 for each violation. 11 U.S.C. § 110(b)-(g). The court can disallow any fees paid or payable to the preparer upon a finding that the fees are in excess of the value of services rendered, 11 U.S.C. § 110(h), and may certify to the district court that damages should be awarded, 11 U.S.C. § 110(i). Finally, the court may enjoin specific conduct of the preparer or may enjoin the preparer from acting as a petition preparer. 11 U.S.C. § 110(j). Although the statute recognizes that petition preparers exist, and imposes upon them affirmative obligations, the statute does not thereby condone the unauthorized practice of law. 11 U.S.C. § 110(k) (“Nothing in this section shall be construed to permit activities that are otherwise prohibited by law, including rules and laws that prohibit the unauthorized practice of law.”).

The complaint alleges violations of sections 110(b) (failure to sign documents), (e) (failure to state his social security number), (e) (executing the debtor’s signature), and (h) (failing to file a fee disclosure), and requests that Womack be enjoined both from violating section 110 and from acting as a petition preparer under 11 U.S.C. § 110(j)(l), (2). Womack’s counterclaim, as best the Court can construe it, requests that the U.S. Trustee be enjoined from slandering Wom-ack with assertions that Womack is practicing law without a license and that the U.S. Trustee be enjoined from collaborating with the county courts to 'cause injury or death to defendant or defendant’s family. Inasmuch as Womack failed to place any evidence in the record regarding the bizarre allegations in his counterclaim, that pleading will be dismissed.

Womack is a “Petition Preparer”

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United States Trustee v. Womack (In Re Paskel), 201 B.R. 511, 1996 Bankr. LEXIS 1306, 1996 WL 599114 (Ark. 1996).

201 B.R. 511 (United States Trustee v. Womack (In Re Paskel)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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