Barry L. Taub v. Mark H. Weber, Acting United States Trustee for Region 18 Ilene J. Lashinsky, United States Trustee for Region 18

This case arises out of an adversary proceeding by the United States Trustee (“Trustee”) against Barry Taub, a bankruptcy petition preparer. Applying Oregon law, the issue we decide is whether Taub engaged in the unauthorized practice of law by interpreting the terms “market value” and “secured claim or exemption” in connection with completion of bankruptcy forms. Here, Taub’s discretionary application of a legal principle took him far outside the role of a scrivener. We agree with the bankruptcy court and the district court that Taub engaged in the unauthorized practice of law.

I. Background

The facts are undisputed. The Green-waldts hired Taub to prepare their Chapter 7 bankruptcy documents for filing with the United States Bankruptcy Court for the District of Oregon. Taub is not licensed to practice law in Oregon. Rather, he is a “bankruptcy petition preparer” within the meaning of 11 U.S.C. § 110 .

Taub and the Greenwaldts disagreed about how to treat a 401(k) retirement account on the bankruptcy forms. Schedule B, an official form included with the Greenwaldts’ Chapter 7 filing, required listing the “market value” of the debtors’ personal property. The heading on the form…