Electronic signatures have become the default in bankruptcy practice. Most firms use some form of e-signature for engagement letters, fee agreements, and authorization forms. What many firms do not have is a documented process that satisfies all three layers of E-SIGN compliance: consumer disclosure, affirmative consent, and hardware/software requirement disclosure.
The three E-SIGN requirements firms miss
1. The consumer disclosure. Before the client signs electronically, you must provide a disclosure explaining that they have the right to receive the document in paper form and how to request a paper copy. The disclosure must be in writing and must be provided before the consent is given.
2. Affirmative consent to electronic delivery. The client must affirmatively consent to receiving documents electronically. A checkbox is sufficient, but it cannot be pre-checked. The consent must be separate from the signature on the underlying document.
3. Hardware and software disclosure. You must tell the client what system requirements they need to access electronic documents. This can be as simple as disclosing that a PDF reader is required — but it must be disclosed before consent.
What this looks like in practice
The bankruptcy.ai portal delivery flow for firm engagement letters includes the consumer disclosure, separate e-signature consent, and hardware/software disclosure in sequence before the signature screen. Each step is timestamped. The completed signature record includes the consent documentation, not just the signature image.