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Section 110 Penalty for persons who negligently or fraudulently prepare bankruptcy petitions.

In re Baugh (May 3, 2012)
Issue: Is it appropriate for the Bankruptcy Court to order turnover and impose sanctions on the bankruptcy petition preparer, when the petition preparer failed to complete the petition and to appear at the show cause hearing?
Holding: The value of the service that the petition preparer rendered was zero and the petition preparer’s service actually acted to the debtor’s detriment. It was appropriate for the Court to impose sanctions to the petition preparer pursuant to 11 U.S.C. § 110. The petition preparer is ordered to turnover fees and sanctioned for contempt of court for failing to appear at the show cause hearing.