What is a bankruptcy mill?

A bankruptcy mill is a high-volume law firm that processes large numbers of bankruptcy cases with minimal attorney involvement. Cases are often handled by paralegals or software, leading to errors, missed deadlines, and poor outcomes for clients.

How do I know if my bankruptcy attorney is a mill?

Warning signs include: you rarely speak with an actual attorney, your case is one of hundreds filed monthly, communications come only from paralegals, hearings are attended by attorneys you have never met, and billing entries are generic or duplicated.

What problems do bankruptcy mills cause?

Common issues include missed deadlines, incorrect schedules, failure to claim available exemptions, dismissed cases, unnecessary fees, and lack of personalized legal advice. Clients may lose assets they could have protected with competent counsel.

Can I fire my bankruptcy attorney if they are a mill?

Yes. You can substitute counsel or proceed pro se at any time. File a motion to substitute counsel with the court. You may also be entitled to a refund of fees for work not performed or performed negligently.

How many cases should a bankruptcy attorney handle?

There is no hard limit, but attorneys filing more than 20-30 cases per month may struggle to provide adequate individual attention. Quality representation requires reviewing each client's unique financial situation, assets, and exemptions.

The Chapter 13 Superdischarge - What Changed After BAPCPA

Before BAPCPA (Pre-2005)

Chapter 13 historically offered a broader discharge than Chapter 7. Certain debts that survived Chapter 7 - including debts from fraud (523(a)(2)), fiduciary fraud (523(a)(4)), and willful injury (523(a)(6)) - could be discharged through a completed Chapter 13 plan. This was the "superdischarge."

After BAPCPA (2005-Present)

BAPCPA added these exceptions to the Chapter 13 discharge, significantly narrowing the superdischarge. Today, debts from fraud, fiduciary fraud, and willful injury survive both Chapter 7 and Chapter 13.

What remains of the superdischarge is limited. Chapter 13 can still discharge certain debts that Chapter 7 cannot, including some property settlement obligations from divorce (523(a)(15) debts). But the practical advantage is much smaller than it was before 2005.

Practical Impact

The narrowing of the superdischarge means there are fewer situations where Chapter 13 offers a discharge advantage over Chapter 7 based purely on scope. The main reasons to choose Chapter 13 today are: saving your home from foreclosure, cramming down vehicle loans, protecting cosigners, and repaying priority debts over time.

Compare Chapter 13 and Chapter 7

Chapter 7 Guide

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