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Friday, May 3, 2024

U.S. Trustee Program Cracks Down on Bankruptcy Petition Preparers Exploiting Vulnerable Consumers

Attorneys & Judges
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Merrick B. Garland Attorney General at U.S. Department of Justice | Official website

Two bankruptcy petition preparers have been prohibited from providing bankruptcy-related services after being found guilty of targeting vulnerable consumers facing foreclosure, thanks to the enforcement efforts of the Justice Department’s U.S. Trustee Program (USTP).

In one case, Kafil Hamim Quaiyum Tunsill was permanently barred from acting as a bankruptcy petition preparer in the Middle District of Florida. Tunsill was also fined $12,500 and instructed to refund $1,900 to a debtor. Director Tara Twomey of the Executive Office for U.S. Trustees emphasized, "Unscrupulous bankruptcy petition preparers often craft schemes to exploit debtors fearful of losing their homes to foreclosure."

Another enforcement action led to Keith Bray and his company Rezidential Group Inc. being permanently enjoined from acting as bankruptcy petition preparers in Oregon. Bray and his company were fined $22,500, ordered to return $3,995 in fees, and pay $7,990 in statutory damages to a debtor.

The USTP's mission is to safeguard the integrity and effectiveness of the bankruptcy system for the benefit of all involved parties. The Program consists of 21 regions with 89 field offices across the country and an Executive Office in Washington, D.C.

The USTP urges individuals to learn more about the Program's initiatives at www.justice.gov/ust.

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