Friend had her first novel accepted by a very small press (two owners, a couple, fighting) and excitedly signed a contract that said the press would edit her work for publication. But instead it referred her to an editor they knew who wanted $450. My friend, eager to see her book published, paid it. The edit/rewrite horrified her. She called me and added that she hated the book's new title, and had paid $250 for the cover image (what?!) and more for her own author photo (that's normal, paying for your own photo), and the press was pushing her to have the book out by November 1, "in time for the holidays," and expected her to do all her own marketing and sell 500 copies by Christmas. My friend asked the press how she could possibly do that, and they said, "Hire a hall and then invite everyone you know and and sell them the book."
The owners weren't speaking to one another and one was secretly trying to establish her own separate press, and secretly asked my friend to come and be HER author, although this entailed having the manuscript edited again by another editor, with my friend responsible for the cost.
What should she do, my friend asked.
I said, "Pull out, today. Call. Tell them you don't want to work with them. Send a registered letter. They broke contract when they made you pay for an edit. They sound too penny-ante to hire a lawyer and fight you, but if they did, they broke contract and they will lose."
But oh...they'd accepted her first novel! She so much wanted to see it in print. And she knew that if she pulled her book, ahead of her lay months of submitting her manuscript until someone else accepted it, and she didn't want to go through that again, and self-publishing, well, that was death; so what should she do?