Attorney at Debt Advisors Law Offices

Practice Areas: Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Stop Foreclosure

Filing for bankruptcy is never a decision people take lightly. When money is tight, it’s tempting to look for cheaper help, and that’s where bankruptcy petition preparers often step in. In Wisconsin, courts have been raising serious concerns about these services. Judges are making it clear that using petition preparers instead of licensed attorneys can come with major risks.

This blog explains why courts are cracking down, what the law says about petition preparers, and why working with a bankruptcy attorney is the safer route.

What Are Bankruptcy Petition Preparers?

A bankruptcy petition preparer is a person or service that helps people complete the paperwork for bankruptcy. They are not lawyers. Their role is limited to typing information provided by the filer. Because they cannot give legal advice or represent anyone in court, their services are often advertised as low-cost alternatives to attorneys.

Many consumers, especially those already under financial stress, see the appeal. Flyers, online ads, or word-of-mouth often promise fast paperwork and affordable fees.

But unlike attorneys, petition preparers are not regulated by state licensing boards. They don’t go through legal training, and there’s no oversight to ensure accuracy.

Why Wisconsin Courts Are Concerned

Wisconsin bankruptcy judges have seen repeated problems with petition preparers. Cases have been filed with missing forms, wrong names, or incomplete details. These mistakes are not just small errors; they can cause an entire bankruptcy petition to be rejected.

Courts have also discovered cases where petition preparers overcharged clients or failed to provide promised services. Some clients never received refunds even after judges ordered repayment.

In response, Wisconsin courts have capped petition preparer fees at $75 to prevent abuse. Judges have even fined and held some preparers in contempt of court.

Wisconsin bankruptcy judges have capped petition preparer fees at $75 and issued contempt orders for noncompliance.

These rulings send a strong message: bankruptcy petition preparers who mislead or harm consumers will face consequences.

Legal Risks of Using Petition Preparers

Federal law sets limits on what petition preparers can and cannot do. Under 11 U.S.C. § 110, they are prohibited from giving legal advice. If they cross that line, it may be considered the unauthorized practice of law.

Under 11 U.S.C. § 110, bankruptcy petition preparers are prohibited from offering legal advice and are subject to fines for violations.

The risks are not just legal for the preparers, they affect the filer too. Errors can delay or derail a case, leaving filers without the protection of the automatic stay. This means creditors can keep calling, wage garnishments may continue, and foreclosure may move forward. In the worst situations, a case can be dismissed entirely, costing time, money, and emotional energy.

Why DIY Bankruptcy Can Cost More in the Long Run

On the surface, paying $75 for a petition preparer seems like a bargain compared to hiring a lawyer. But what looks cheap upfront can become expensive quickly. If mistakes force you to refile, you’ll face additional court fees. A dismissed case could mean losing protection from creditors at the worst possible time.

Even small errors can have long-term effects. For example, a missed form could delay your case and extend the damage to your credit. By contrast, working with a licensed attorney provides oversight at every step.

A Milwaukee bankruptcy attorney ensures that paperwork is correct, deadlines are met, and your legal rights are fully protected.

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How Bankruptcy Attorneys Provide Protection

Licensed bankruptcy attorneys in Wisconsin offer far more than paperwork assistance. They can evaluate whether you qualify for Chapter 7 or Chapter 13 in Wisconsin, explain exemptions, and give legal advice that directly impacts your future. Wisconsin bankruptcy attorneys are also authorized to appear in court and communicate with trustees on your behalf.

A lawyer’s role is to look at your entire financial situation, not just type what you provide. They are bound by ethical rules and professional responsibility. Petition preparers have no such obligations.

Debt Advisors Law Offices represents clients across Wisconsin, including Milwaukee, Madison, Kenosha, Oshkosh, Sheboygan, and Green Bay. Our firm helps individuals understand their options under federal and state bankruptcy law, always with compliance and professionalism.

Protecting Yourself When Considering Bankruptcy

When exploring bankruptcy, it’s important to recognize the red flags of petition preparer scams. Be cautious of anyone who promises guaranteed results, uses high-pressure sales tactics, or advertises services that sound too good to be true.

The safer step is to schedule a consultation with a licensed Wisconsin bankruptcy attorney. Unlike petition preparers, attorneys are accountable to state bar regulations and can guide you through the process with accuracy and transparency.

For government resources, you can review official information on bankruptcy procedures through the United States Courts website.

Petition Preparers vs. Bankruptcy Attorneys

Factor

Petition Preparer Licensed Bankruptcy Attorney
Can provide legal advice No Yes
Court representation No Yes
Regulated training No Yes (State Bar)
Typical fee Capped at $75 Varies by case
Accountability Limited Ethical rules, malpractice coverage

Frequently Asked Questions

What is the role of a bankruptcy petition preparer in Wisconsin?

They type forms for a fee but cannot provide advice or represent clients in court. Their role is strictly clerical.

Why have Wisconsin courts fined bankruptcy petition preparers?

Courts fined them for repeated errors, overcharging clients, and ignoring refund orders. Judges also capped their fees to protect consumers.

Can a petition preparer stop wage garnishment or foreclosure?

No. Only a correctly filed bankruptcy petition, often managed by an attorney, triggers the automatic stay protections.

What happens if a bankruptcy filing is rejected due to errors?

Filers may face delays, added costs, or dismissal. This could result in continued collection actions or foreclosure proceedings.

Is it illegal for petition preparers to give legal advice?

Yes. Federal law prohibits it. Offering advice without a license is considered unauthorized practice of law and carries penalties.

Why is hiring a bankruptcy attorney a safer option?

Attorneys are trained, regulated, and accountable. They provide legal advice, protect your rights, and represent you in court.

Conclusion

Bankruptcy petition preparers may appear to be a cheap solution, but Wisconsin courts have shown that the risks are real. Errors, overcharging, and unauthorized advice can create serious problems for people already under financial stress.

The safer path is to work with a licensed bankruptcy attorney who can ensure your case is filed correctly, your rights are protected, and your future is safeguarded.

Debt Advisors Law Offices helps Wisconsin residents navigate bankruptcy with care and compliance. If you are considering bankruptcy, reach out for a free consultation and get the trusted guidance you need.

Learn about bankruptcy protections, types of bankruptcy, how to get started, what to expect, and who to trust. Filing bankruptcy is the ONLY way to completely eliminate debt. If bankruptcy is right for you, it offers powerful protections that cannot be achieved through alternative solutions such as hardship relief, loans, or debt settlement.

  • Exceptional service. The entire team was friendly and knowledgeable. The attorney took his time to walk me through step by step. I will recommend this law office to anyone!

    J Burks

  • I went through Debt Advisors as a referral by a friend. I am very happy I did so. The staff that I worked with were very helpful and showed a high level of professionalism. They were always able to answer any questions that I had. I was very happy with the attorney that I worked with, Michael Georg. Very professional.

    Terri Grote

  • Attorney Chad Schomburg and Debt Advisors helped me with my debt about three years ago. Chad explained the process to me and answered any questions I had, and the assistants compiled my documentation very efficiently while keeping my case moving forward. They were always available when I needed them, and even years later, I’m able to reach out to them, and they are willing to help. They have turned my life around 100%, and I could not have done it without them! Absolutely recommended!

    Tim Harris

  • They were there for my family from day 1 until the end, 5 years later (Ch. 13). Whenever I had questions or concerns they were always very responsive and gave me excellent advice. Michael and Jeremy are both exceptional bankruptcy attorneys. I highly recommend Debt Advisors.

    Steve

  • After I had to go on disability, I used my credit cards a lot more thinking I could pay them off when I was able to go back to work. That didn’t happen and I found myself so much worse off than I could handle. I went to Debt Advisors feeling terrible about what I had to do. Chad and everyone there were very understanding and put my mind at ease while taking such great care of me. They were there every step of the way and supported me when I was “freaking out”!! Every time I needed to contact them; their response time was amazing!! God forbid I ever need to go through this again, but I know where to turn if I need help! Debt Advisors are more than just filing bankruptcy on my behalf. They really care about what you are going through!! Thank you, Chad, Jeremy, Mike, and everyone at Debt Advisors!! I cannot tell you enough how much I appreciate all of you!! J Hammond

    Steve

  • After I had to go on disability, I used my credit cards a lot more thinking I could pay them off when I was able to go back to work. That didn’t happen and I found myself so much worse off than I could handle. I went to Debt Advisors feeling terrible about what I had to do. Chad and everyone there were very understanding and put my mind at ease while taking such great care of me. They were there every step of the way and supported me when I was “freaking out”!! Every time I needed to contact them; their response time was amazing!! God forbid I ever need to go through this again, but I know where to turn if I need help! Debt Advisors are more than just filing bankruptcy on my behalf. They really care about what you are going through!! Thank you, Chad, Jeremy, Mike, and everyone at Debt Advisors!! I cannot tell you enough how much I appreciate all of you!! J Hammond

    J Hammond

  • Chad Schomburg and his Staff did a phenomenal job for me and in an expeditious manner. I’ve recommend countless clients to Chad Schomburg, Wow!!! Outstanding customer service from the Schomburg office:)

    Lisa Williamson