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When preparing for you free consultation with Mr. Mills, please bring the following documents to help us better understand your picture. If you can’t find all of these items, don’t let that discourage you from coming in. Often we can provide guidance on where this information can be obtained:

  • The most recent bill or statement from each creditor
  • All letters from collection agencies or lawyers
  • Any papers relating to a lawsuit
  • The past 6 months of paystubs
  • The past 2 years of tax returns
  • State ID (such as a driver’s license) and your Social Security card
  • A list of real estate and automobiles you own

Although this is not a complete list of what’s needed should you choose to pursue bankruptcy, it serves as a starting place to help us make an initial analysis of how we can provide the help you need.

Three major benefits come from bankruptcy. The first is the automatic stay, a federal court order that takes effect as soon as your bankruptcy case is filed. It prohibits your creditors (the people you owe money to) from calling or harassing you, suing you, repossessing anything or foreclosing on your home, or any other actions to collect a debt from you. They have to leave you alone.

The second benefit is the ability to claim exemptions. Exemptions represent certain types of property you can keep even though you’ve filed bankruptcy. These exemptions, in most cases, cover all the assets you own, meaning that in most cases you won’t lose any assets.

The third benefit is the discharge itself—the forgiveness of debt that bankruptcy provides to honest debtors—those that fully, accurately, and honestly disclose everything they own and everything they owe to the Bankruptcy Court.

Although these are the Big Three benefits that come from bankruptcy, there are many others—peace of mind, the ability to sleep at night, improvement of credit scores, the freedom to answer the telephone without fear that it’s another debt collector. Other, more technical benefits may also be obtained from a bankruptcy filing, like voiding certain kinds of judgments and liens against your property, and Mills Law knows how to use them to obtain the fresh start you need.

A bankruptcy discharge gets rid of most typical debts, including:

  • Credit card bills
  • Medical bills
  • Personal loans
  • Some taxes
  • Lawsuits
  • Business debt
  • Deficiency claims (debts left over after repossession or sale of a car, home, or other property)

Occasions also exist when bankruptcy will allow you to reduce the amount you owe on your cars and other personal property.

This is not a complete list. We can help identify those debts that will be extinguished by a bankruptcy discharge.

Bankruptcy will not get rid of all types of debt.  These debts are referred to as non-dischargeable debts because you will continue to owe them after your bankruptcy case is over.

Some debts that will survive the bankruptcy include:

  • Most taxes
  • Most student loans
  • Child support and alimony
  • Debts arising from fraud or shortly before you file bankruptcy

This is not a complete list. We will help identify which debts may be forgiven, and those that will remain, based on your personal case.

David F. Mills of Mills Law Firm is now serving as head of the Stubbs Bankruptcy Clinic for Campbell Law School.  Mills’s term began December 1, 2014 and continues to this day.

The Stubbs Bankruptcy Clinic is charged with providing students a unique experience in bankruptcy law as it tackles cases referred by the U.S. Bankruptcy Court and Legal Aid of North Carolina.

Mills, a double Camel, received both his undergraduate and graduate degree from Campbell University. He has been active with the school for years. He represents clients in a wide range of bankruptcy matters, including assisting North Carolina farmers with Chapter 12 bankruptcy and related claims.

For more information, visit the Campbell Law News website.

The first step toward your fresh start is to call Mills Law and schedule your free consultation. You’ll need to bring certain information (see “What to Bring to the First Meeting”). During this appointment you’ll meet with David Mills to talk about your concerns, goals, and the details of your financial situation. Based on your assets, liabilities, income and your objectives, we’ll help you decide whether bankruptcy is right for you and, if so, what type (or chapter) of bankruptcy will most help you.

At this point you’ll receive a list of additional information to gather and an outline of the steps needed in order to prepare for bankruptcy filing. We’ll also discuss the cost of the bankruptcy case so that you can make an informed decision.

Once you’ve provided all the needed information we can prepare the required documents for Bankruptcy Court, which you will carefully review to make sure everything is accurate, truthful, and complete. Once you’ve finished this step, your case gets filed.

At that point, the automatic stay stops your creditors from calling, writing, or trying to collect from you. The court appoints a trustee to oversee your case and sets up a meeting between you and this trustee. Rest assured you won’t be alone as Mills Law will be with you each and every step along the way. Mr. Mills will attend this meeting where the trustee will ask you a series of questions to make sure the information you’ve provided is honest and accurate.

Once you complete the requirements of the Bankruptcy Court, you’ll receive the discharge, which is the forgiveness of debt, and your case will soon be closed allowing your life to move forward with a clean slate.

If you’ve been making a lot of late payments, or not paying some debts at all, then your credit score has probably already taken a hit, and there’s likely nowhere to go from here but “up.”  Bankruptcy will show up on your credit report for up to 10 years, but ask yourself how long it will take you to dig out of the financial hole you’re in if you don’t file? Getting your debts forgiven in bankruptcy can give you some breathing room and a chance to finally get your feet back on solid ground.

FOR IMMEDIATE RELEASE
November 18, 2014

RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced DONALD Wayne MANGUM , 52, of Fuquay-Varina to 24 months imprisonment, followed by 3 years of supervised release, and ordered him to pay $101,675.00 in restitution.

MANGUM was named in an Indictment filed on October 24, 2013, charging him with Bankruptcy Fraud and Destruction, Alteration, and Falsification of Records. On December 16, 2013, MANGUM pled guilty to those charges.

According to the investigation, on February 28, 2011,  MANGUM fraudulently filed a Chapter 13 bankruptcy petition in the Eastern District of North Carolina, in the name of someone else in an effort to prevent the mortgage holder from foreclosing on his home. MANGUM failed to file a schedule of assets and liabilities or statement of financial affairs.  The debt counseling statements, which were fraudulently filed under the penalty of perjury by MANGUM, were signed in the name of another.

Further, on June 10, 2011, MANGUM fraudulently filed a pro se Chapter 13 bankruptcy petition in the Eastern District of North Carolina, in the name of another.  The debt counseling statement was fraudulently filed under the penalty of perjury by MANGUM.

MANGUM appeared at a Rule 2004 Examination in February, 2012, during which time he admitted to the fraudulent filings, and admitted to making misleading statements.

On June 12, 2012, the Bankruptcy Court entered an order directing that the two fraudulently filed cases be dismissed ab initio and directed that the records be expunged other than as necessary for further investigation. MANGUM was barred from filing bankruptcy for ten years and was permanently enjoined from assisting another individual with bankruptcy filings.  Lastly, as a sanction, MANGUM was ordered to pay $2,500 to the United States Bankruptcy Court within five months.

Investigation of this case was conducted by the Federal Bureau of Investigation.  Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.

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Source: http://www.justice.gov/usao/nce/press/2014/2014-nov-18_02.html

If you have been reading about filing bankruptcy lately, you have probably read a lot about “no money down” bankruptcies, promising to get you the help you need at no cost. It sounds great, but before you commit, you need to make sure you understand what you are getting into, and exactly what you are getting.

These advertisements are referring to Chapter 13 wage earner plans. In a Chapter 13, the debtor (the person filing bankruptcy) makes monthly payments in order to repay some or all of his or her debt. If the debtor has higher income or needs to stop a home foreclosure, a Chapter 13 is the way to go. These payment plans usually go on for 3 to 5 years.

However, in many situations, a Chapter 7 case will stop your creditors from trying to collect from you and provide you with a discharge, or forgiveness of your debt, in a much shorter time (4 months or so) without having to make any monthly payments at all or give up any assets. It’s true that all attorney fees in Chapter 7 must be paid up front. This is because any debt owed when the case is filed will be wiped out—including attorney fees. But, those fees are generally less than half the attorney fees that you will have to pay in a Chapter 13 case. That’s right—“no money down” doesn’t mean “no cost.” It just means they are paid over time. Generally, Chapter 13 attorney fees are more than double Chapter 7 fees and include an added commission that is paid to the Chapter 13 Trustee—just like paying interest. Paying for things with interest over time is often the cause of financial trouble in the first place!

So, if you pay a $3,700 attorney fee through your Chapter 13 plan (which is standard), with the commission you will pay a total of almost $4,000 in attorney fees, compared to $1,200 to $1,600 in most Chapter 7 cases.

When considering a “no money down” bankruptcy case, ask the lawyer these questions:

  1. Do I qualify for Chapter 7?
  2. Would Chapter 7 get me the help I need?
  3. How much does Chapter 7 cost?
  4. How much does Chapter 13 cost?
  5. Do I have to file Chapter 13?
  6. Why are you recommending Chapter 13?
  7. How long will I be in Chapter 13? How long would I be in Chapter 7?
  8. Are you recommending Chapter 13 so that you can charge a higher fee?

There is often a very good reason to file Chapter 13. Just make sure you ask the right questions, that you know exactly what you are getting into, and that you are acting in YOUR best interest.


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