Another large company files for bankruptcy this month, this time it is US Loan Auditors of Rancho Cordova, California. It is also the same company that is accused of using improper practices with its customers. The company's filing for bankruptcy could jeopardize the efforts of state officials who are attempted to bring a legal action against US Loan Auditors.

State officials were hoping to reclaim $60 million from the company in order to reimburse those customers who were scammed by US Loan Auditors. Attorney General Jerry Brown claims that the company, along with a sister company, My US Legal, knowingly scammed hundreds of borrowers into fake mortgage-modification plans.

This could be the reason why the company decided to file for a Chapter 7 bankruptcy which allows the company to liquidate all of its assets; My US Legal also filed for Chapter 11 bankruptcy this week. In addition, the owners of the firms could also be seeking bankruptcy protection in the near future, which would also protect them from lawsuits from the state.

Considering bankruptcy in the city of Houston?  Contact the Malaise Law Firm to work with a Houston bankruptcy attorney.