§528 — Title 11 Bankruptcy | U.S. Code

Summary

Debt relief agencies must, within 5 business days after they first give someone help with bankruptcy but before that person files for bankruptcy, sign a written contract that plainly says what help they will give and how much it costs and how the person must pay. The agency must give the client a copy of the signed contract. When advertising to the public, the agency must clearly say the services are about bankruptcy. Ads must include a clear statement saying the business is a debt relief agency and that it helps people file for bankruptcy under the Bankruptcy Code (or words that say the same thing). Ads that describe help with a chapter 13 plan are covered even if chapter 13 is not named, and phrases like “federally supervised repayment plan” that could mislead are treated as bankruptcy ads. Ads about help with credit problems, foreclosure, eviction, or debt pressure must say the help may involve bankruptcy and must include the same clear agency/filing statement.

Title 11, §528

Bankruptcy — Source: USLM XML via OLRC

(a)A debt relief agency shall—

(1)not later than 5 business days after the first date on which 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 use the following statement in such advertisement: “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.

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such

Effective Date

, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as an

Effective Date

of 2005 Amendment note under section 101 of this title.

§528 Requirements for Debt Relief Agencies

Summary

Title 11, §528

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Citations & Metadata