As bankruptcy filings have soared to record highs, many consumers are turning to high-volume bankruptcy law practices and bankruptcy-petition preparers for help in reorganizing their finances, staving off foreclosure or wiping out debt. Dubbed “bankruptcy mills” by their critics, many advertise heavily on radio and television, while others deluge homeowners in foreclosure by direct mail, telephone and email solicitations with offers of instant relief.
These companies usually advertise quick fixes for debt problems, government protection from creditors, or claim they can stop foreclosures. The ads often fail to mention that the relief they're promoting is bankruptcy, and you may not realize this until you've paid advance fees for the company's services.
Our experience with this industry has been that many of these "petition mills” promote their services as debt counselors, LDA’s, paralegals, or even as lawyers. Some document preparation service companies may claim to work in conjunction with a licensed attorney, however, this does not mean that a licensed attorney will even look at your case unless of course you agree to pay additional fees. It is against the law in California for a non-attorney to give legal advice. The State Bar of California also prohibits the practice of fee sharing by attorneys and non attorney businesses.