[16-Jan-2020] DarksydePhil is filing for bankruptcy (general thread) - and has officially done so on January 31 2020, meaning a lot of his finances have become public

[BallBuster]

Buyers market for cars, dood.

I'm surprised he didn't 'splurge' on something a tad bit more exotic, like a BMW or Audi, since that's what all the real adult businessmen drive.

He had a BWM for a few years and never drove it. He claimed he never once did an oil change on it.

This Corolla is a 2017 he bought brand new and it only has 5000 miles on it apparently. Like why?

 

[WeeblesWobble]

He had a BWM for a few years and never drove it. He claimed he never once did an oil change on it.

This Corolla is a 2017 he bought brand new and it only has 5000 miles on it apparently. Like why?

Remember when people were telling him to get a used car and he kept saying that it would cost him more in the long run. Pepperidge Farm members. I don't know if that vehicle actually has 5k miles, but he definitely never drives it. A $10k Corolla that is a couple of years older would have done him fine. Hell, he could have bought a decent Buick with seats and a ride that would be more gentle on his back for less. A GM wouldn't tolerate him refusing to get oil changes though.

 

[I can't imagine]

Subforum tries to not suggest good ideas for DSP here due to him reading it every day. But you know what? Fuck it, way too late in the game now to do any good for the pigroach!

What exactly in the Washington state home exemption law he's citing here will end up raming it up his ass, as Phil's so fond of promising during any random variety streaming day of his, as I'm not familiar with their legal set up for this kind of proceeding? He was very insistent he was keeping that middle unit a month ago and they do cite a specific law to protect it in the paperwork I read, so I would assume he feels this limb could support his attempt to game the system to his favor.

Basically, if your residence has <$125,000 in equity in it, you aren't required to sell it off. In other words, the value of the house less the amount you owe must be less than $125K.

Now, this isn't usually a super big issue if you're only a few years into a mortgage; you're mostly paying interest and a tiny bit of the principal for the first couple years anyway. However, his condo's value has increased significantly since he purchased it, which will likely mean it doesn't qualify. He's presumably deliberately undervaluing it, since even a cursory look into the value of the condo shows that it's worth significantly more than he's claiming.

I don't know WA state bankruptcy courts, but if it's like other states, the trustee gets a commission on the sale of assets used to pay off the creditors, which means they're likely to bring this up. There are a variety of possible outcomes from there, but the most likely would be either: a) the rejection of the filing for this (and likely other) reasons; or b) the sale of his condo to provide relief to his creditors.

Of course, it's hardly the only problem with his filing. It's fairly likely that an honest accounting of his finances will demonstrate that he does not, in fact, qualify for a Ch.7 filing. I can only assume that he legitimately believes he can just put whatever numbers he likes that make it work, tell the judge and trustee "just trust me" and wash his hands of it. Which, to put it mildly, is a pretty poor understanding of how bankruptcy court works.

 

[Skeletor]

The fuck is it with lolcows not getting oil changes. Even CWC takes better care of his car than this.

 

[PutridElephant]

His Corolla is a 2017 he bought brand new and it only has 5000 miles on it apparently. Like why?

I thought it was a lease, not purchase.

 

[Iron Hamster]

his biggest mistake was pretending he only earned $50k gross profit in 2019, which means pre-tax, pre-expenses

Spoiler

yoinked from twitter, can't find the post

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his $5k expenses meme comes from these fake expenses

(large image warning)

Spoiler

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Just noticed line 16 is exactly what its says is not suppose to be there. He's paying back taxes on what was suppose to be deducted from his pay. If he was still in Ct, he could have claimed 'wheel tax' there for his automobiles.

 

[actually]

Section question queries if primarily, not all, debts, are consumer. Now how all those first mortgages are being folded into consumer debt and make up the primary share of the outstanding amounts owed, I don't know, but then again I don't rake in 12 C notes to mill these things through the state system either?

I agree, but going through the enumerated debt, all of his debt (that's not mortgages, taxes, or the car) is listed as consumer debt. On each and every credit card/loan debt, the type is consumer debt. He doesn't list any business debt at all.

I thought it was a lease, not purchase.

BMW was a lease. Toyota he purchased.

 

[Frogga]

BREAKING NEWS

Meeting with the creditors has been scheduled for 3\5\2020 at 10am with Trustee Nancy L James.


Source
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Source 2
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March 5 is a Thursday. Is Phil going to take two days off that week or work through his usual Tuesday scheduled mall walk?

Or is he autistic enough to petition the court for a new date because he needs to "work" that day

I'd imagine he'll say he has to take two days off that week because the stupid courts won't schedule around his mandatory Tuesday off day. Kat seems to be working on Thursdays since Jasper was on stream during KOTOR this past Thursday, so I doubt he'll schedule his day off for Thursday.

Does anyone know how long these court hearings typically last? If it starts at 10am and goes on for a few hours, he'd still be able to "work" that day by doing his night stream.

 

[breezy style]

I could have sworn that the fee paid went by how much your debt was... obv i was wrong. I used a ' mill' of sorts.. 1 of those firms you see on tv 1000 times a day.. N it cost 1750 to file/ attorney fees. That was all i paid tho, n never had to meet w/ my lawyer (other than initial sitdown) until the hearing to discharge/reaffirm debts... Otherwise im sure the 200+ hourly billing would've taken effect.

Also i wanted to add, that after listening to some tihydp's the last few nights... I heard several donations from a guy named ' mr breezy' or something. I've never donated to dsp, just wanted to make that clear..lol.

When i heard that name had donated ( n seemed to be a true fan), i instantly cringed n thought to post that it wasn't me. Then i started thinking... Heh, i have no issue revealing that I've filed for bankruptcy n was a drug addict (sober now tho, since 2012)....but having ppl think i give money to the greedy pigmaster? Couldn't let it happen.

 

[actually]

For @SoapQueen1 and @AnOminous and anyone else who wants to take a whack at it:

If Phil has actually not paid his 2019 federal taxes as he claims, how will the bankruptcy filing affect (or not affect, I guess), any attempt he may make to get on a payment plan for the second time?

 

[James Smith]

New document attached. Also his request to pay filing fees in installments was approved.

 

[Synth]

For @SoapQueen1 and @AnOminous and anyone else who wants to take a whack at it:

If Phil has actually not paid his 2019 federal taxes as he claims, how will the bankruptcy filing affect (or not affect, I guess), any attempt he may make to get on a payment plan for the second time?

He'll still be on the hook for them. The rules seem to be the same for Chapter 7 and 13 when it comes to Federal Tax debt -- it must be older than 3 years in order to be discharged, so he'd still be responsible for 2017-2019. I imagine he'd just be put on a plan that the bankruptcy trustee determines after looking at all of his finances.

 

[actually]

He'll still be on the hook for them. The rules seem to be the same for Chapter 7 and 13 when it comes to Federal Tax debt -- it must be older than 3 years in order to be discharged, so he'd still be responsible for 2017-2019. I imagine he'd just be put on a plan that the bankruptcy trustee determines after looking at all of his finances.

I figured he would still be on the hook, but given that he's already on a payment plan, I was wondering how likely the Feds are to be willing to put him on yet another payment plan while he's also trying to discharge his absurd debt while making $100k+.

 

[James Smith]

I was wondering how likely the Feds are to be willing to put him on yet another payment plan while he's also trying to discharge his absurd debt while making $100k+.

I'm wondering how the IRS is going to react to a debtor who has been telling them he has $520 of business expenses each month when they see he's telling the bankruptcy court he has ten times that.

 

[actually]

I know the numbers have been cited before, but if anyone wants to see the actual code about judgment exemptions that Phil is going to be claiming, you can find them here:

https://apps.leg.wa.gov/rcw/default.aspx?Cite=6

Sections 13 and 15 are the main ones.

 

[Stalker Sociopath]

For @SoapQueen1 and @AnOminous and anyone else who wants to take a whack at it:

If Phil has actually not paid his 2019 federal taxes as he claims, how will the bankruptcy filing affect (or not affect, I guess), any attempt he may make to get on a payment plan for the second time?

Well, his ability to get into a payment plan will depend on the balance he has with the IRS. If the total balance is under 25K, they won't have a problem. If it is over that, he is going to have to submit financial documents similar to what he is doing with the bankruptcy filing where he has to show what his monthly income and expense are and what he can afford.

 

[AnOminous]

I figured he would still be on the hook, but given that he's already on a payment plan, I was wondering how likely the Feds are to be willing to put him on yet another payment plan while he's also trying to discharge his absurd debt while making $100k+.

The question is whether the payment plan would be consistent with any other payment plan he gets, but he'd only get one in Chapter 13, I believe, if the case gets converted. Chapter 7 is straight liquidation. The IRS doesn't give a fuck about your bankruptcy any more than the law requires. Their view is fuck you, pay me. So if he obviously can't meet a payment plan because paying the IRS is inconsistent with it, that plan won't be okayed.

There's some sanity checking on these things.

 

[Synth]

I figured he would still be on the hook, but given that he's already on a payment plan, I was wondering how likely the Feds are to be willing to put him on yet another payment plan while he's also trying to discharge his absurd debt while making $100k+.

They'll get their money somehow. I've a very cursory understanding, but they'll liquidate whatever is of value (he keeps the wakhando if the debt is reaffirmed by the mortgage lender) and the feds get first dibs after those with secured debts/liens. If he's got 15k worth of assets and that's what he owes, then the IRS is happy and whatever scraps are leftover go to the 13 other entities he owes. If he can only cover half of it, the feds ain't just gonna wipe it off because shit under 3 years old cannot be discharged. Trustee will probably put him on some 6 month plan since his income will remain roughly the same and he won't have $130k worth of debt he's paying the monthly minimums on anymore.

Of course, that all hinges on him getting everything he wants (reaffirmation of his wakhando mortgage and not being forced to file for Chapter 13), but I think that's not happening once they look into his shit and see what kind of shenanigans he's pulling to pass the means test.

 

[Radical Goodspeed]

New document attached. Also his request to pay filing fees in installments was approved.

Isn't paying the lowest amount over the longest term why he ended up here? I know court fees don't accrue interest, but when you file for bankruptcy, aren't you supposed to start developing new spending habits? Like maybe paying for shit up front?

Goes without saying Phil's an idiot and even if pigroach luck wins again, this is the greater, long term DSP cycle. For those of you still following him in a decade, this shit will happen this same way again.

I just can't tell if its entirely because he's a cheap fuck or because he believes other parties will forget about an installment plan on a long enough timespan and he can get out of paying the full balance of anything.

 

[Exceptional Chimp]

I figured he would still be on the hook, but given that he's already on a payment plan, I was wondering how likely the Feds are to be willing to put him on yet another payment plan while he's also trying to discharge his absurd debt while making $100k+.

At the risk of power levelling, but when I had an IRS payment plan for back taxes about 6 years ago the terms clearly stated you must pay all taxes when due. If you don't then the plan was cancelled and "enforcement" would commence.

Fortunately I paid on time each year (through withholding) so I never found out what enforcement entails.

Unless something changes Phil just might learn...