[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

[Iron Hamster]

Pretty sure that's not how it works. She uses some kind of software where she fills in information on the client and it spits out the finished form.

There's probably defaults for all kinds of things that she doesn't explicitly change. Of course Phil probably should have read the finished document, but hey, that's him. The stupid cat question or how many clothes Phil owns won't matter anyway in the long run...

The main question the trust is going to ask is where the $10k of income are disappearing to (besides cat food) and why he can't manage to pay off his debts if he's earning so much,.

lol. Are you seriously trying to say an attorney would just submit a form without asking the client the questions on said form? And just guessing what the answers should be? really?

 

[myone]

one thing dsp does habitually is hide the truth underneath multiple lies

it's just his weird way of (falsely) parsing reality I guess. I'm sure the lawyer person told him something like: "Don't worry too much about the details, as long as you're honest we can fix any mistakes as amendments to the filing"

But Pigroach doesn't understand the difference between a lie and a mistake and now he claims everything is fine and there's no need to fix his 'mistakes', because the lawyer person said mistakes are a okay.

lol. Are you seriously trying to say an attorney would just submit a form without asking the client the questions on said form? And just guessing what the answers should be? really?

Yes. It's a cheap bankruptcy mill. I bet she makes all kinds of mistakes all the time. It's no big deal to make a mistake, she's not committing fraud by ticking the wrong box. She's definitely not wasting her time proof reading the form.

He's committing fraud by being dishonest about his finances.

 

[HansGruber]

It's gotten to the point where even Phil's brain can't figure out what Phil's doing.

 

[Iron Hamster]

The glaring issue here is why wouldn't she just ask him the questions on the form? lol. Mill or not. He had to contact her. All she would have to do is say "hold on.......let me ask you a few questions". Not everyone is as lazy as the goutmaster general. A more probable scenario is she handed/sent him the forms to fill out. They need HIS info. And HE'S the only one that has it.

 

[myone]

A more probable scenario is she handed/sent him the forms to fill out. They need HIS info. And HE'S the only one that has it.

Unless you think Snort bought himself a copy of "Best Case Bankruptcy" just for this (lol, imagine him making wise investments) he didn't fill this out himself:

He probably paid some kind of flat rate for the initial filing and she has a very streamlined process to get the petition out. This flat fee doesn't include enough billable hours to ask the client every question on the form, it's 50 pages. Not to mention that many inconsistencies are probably just her trying to make sense of Phil's incoherent rambling.

Admittedly: Lots of this is speculation. Maybe someone can take a peek at the software.

 

[architect]

There's one meeting with the bankruptcy lawyer who tells the client what documents he needs in order to prepare the bankruptcy application. The client signs a retainer agreement which also stipulates that the client will provide true and correct information. The lawyer doesn't care about the numbers or where they came from, in fact the less he knows the better, because he wants to be able to claim he was acting in good faith if things go awry.

 

[James Smith]

Maybe someone can take a peek at the software.

$995 for a single user, Chapter 7 only license.

 

[kamekmagik]

Maybe he's right, I wouldn't know because I only have two credit cards

but Phil says you can fill everything with lies and they don't care. I really can't imagine the court is completely fine with you wasting their time. At the very least I have to imagine they're going to keep a closer eye on you for subsequent filings

 

[a bootiful jung woman]

Phil probably only needs to go to a creditor meeting. The bulk of the process is administrative. We'll likely only get a series of forms out of this

All courtroom proceedings in the Western District of Washington are captured on digital audio. These recordings are the official record of courtroom proceedings and will be used by transcription agencies when producing transcripts. ... TO ORDER AN AUDIO CD OF A 341 CREDITORS’ MEETING - https://www.wawb.uscourts.gov/order-audio-recording-hearing

 

[Very Honest Content]

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.

Ok, this is why this explanation just strikes me as overlooking something; it makes little-to-no sense to have the state wanting homes people live in as a primary residence sold even if it's to try and satisfy some debts they failed to live up their promise to pay on. I just envision a family raising kids (actual kids, not your pet cat you consider a kid, but I digress) going through this same financial reckoning and it seems needlessly cruel on the court's part to upend an otherwise stable home environment when it's not absolutely necessary if they can find a way to make payment numbers work at all otherwise without going to that extent.

I tried to read the exemption laws actually linked to later in thread and I fail to see where the all certain forced sale of the property is going to definitely happen under them because there's more than the exemption for property taxes in value in the property based on website estimates. The law talks about sales in good faith, not forced sales, providing a year's worth of exemption to the funds generated from tax levies on proceeds up to the exemption's maximum amount in order to buy another homestead property with those funds. AKA a 'like-kind exchange.'

Maybe Washington state is as salty as Phil is getting his ass beat in Street Fighter II Turbo generally though, I don't know...

 

[tzgnilki]

I wish someone was renting his CT condo so he would be an even bigger asshole for being foreclosed on

 

[I can't imagine]

Ok, this is why this explanation just strikes me as overlooking something; it makes little-to-no sense to have the state wanting homes people live in as a primary residence sold even if it's to try and satisfy some debts they failed to live up their promise to pay on. I just envision a family raising kids (actual kids, not your pet cat you consider a kid, but I digress) going through this same financial reckoning and it seems needlessly cruel on the court's part to upend an otherwise stable home environment when it's not absolutely necessary if they can find a way to make payment numbers work at all otherwise without going to that extent.

I tried to read the exemption laws actually linked to later in thread and I fail to see where the all certain forced sale of the property is going to definitely happen under them because there's more than the exemption for property taxes in value in the property based on website estimates. The law talks about sales in good faith, not forced sales, providing a year's worth of exemption to the funds generated from tax levies on proceeds up to the exemption's maximum amount in order to buy another homestead property with those funds. AKA a 'like-kind exchange.'

Maybe Washington state is as salty as Phil is getting his ass beat in Street Fighter II Turbo generally though, I don't know...

There's a lot of pages in this thread, so I can't be sure, but I think the part you're looking at is for the voluntary sale of your homestead (RCW 6.13.070), since it mentions good faith sale and a year exemption to find a new property. The relevant statute regarding the forced sale of the property is RCW 6.13.160:

Sale, if not divisible.
If, from the report, it appears to the court that the appraised value of the homestead property, less liens and encumbrances senior to the judgment being executed upon and not including the judgment being executed upon, exceeds the amount of the homestead exemption and the property is not divided, the court must make an order directing its sale under the execution. The order shall direct that at such sale no bid may be received unless it exceeds the amount of the homestead exemption.

 

[Dumpster dived waifu]

Maybe someone can take a peek at the software.

$995 for a single user, Chapter 7 only license.

I make absolutely no guarantees on being able to deliver, but I am asking around to see if I know anyone that might have that software and might let me peek at it. Expect no follow up, I disappoint regularly.

 

[Authentic Sauce]

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.

The hearing will be fairly quick at most it'll probably be 30 minutes. Even that could be unlikely, the trustee is not going to waste a ton of time trying to unravel everything, they have many more people to deal with that day.

Or the other way around: I think his creditors are going to be very interested in why he's paying so much income tax to the IRS for 2018 while simultaneously claiming that he only earned 78k. Aren't they going to ask for his tax filings for 2019, where he claims a gross income of $56k?

His most recent tax return along with all 1099s has to be provided to the trustee 7 days before the hearing, along with bank statements for I believe 60 days, each district can have slightly different rules. I suspect he will bring his 2018 returns but given the timing of his case, he will either need to provide 2019 before the hearing or after the hearing but he will have to provide it before this gets resolved.

That reminds me. Its been mentioned his PayPal account isn't listed. That's a pretty egregious omission. A PayPal account works just like a bank account - you most certainly can keep funds in there as long as you like. He's likely paying for stuff right from that account, and could have had a significant amount of funds in there when he filed. This will raise suspicion.

I think people are getting a little too worked up over the paypal account issue. The bankruptcy filing is listing assets, its not a full listing of every account you have. Its pretty well established he empties his paypal account every night so its reasonably fair to not list it in the filing. Now if he doesn't include the statements for the paypal account before this hearing that would be a problem. The paypal account will be discovered with the documents he has to provide before the hearing.

 

[Iron Hamster]

His most recent tax return along with all 1099s has to be provided to the trustee 7 days before the hearing, along with bank statements for I believe 60 days, each district can have slightly different rules. I suspect he will bring his 2018 returns but given the timing of his case, he will either need to provide 2019 before the hearing or after the hearing but he will have to provide it before this gets resolved.

He is so screwed. He certainly can't afford an attorney if he needs a payment plan for a $335 filing fee.

 

[actually]

I think people are getting a little too worked up over the paypal account issue. The bankruptcy filing is listing assets, its not a full listing of every account you have. Its pretty well established he empties his paypal account every night so its reasonably fair to not list it in the filing. Now if he doesn't include the statements for the paypal account before this hearing that would be a problem. The paypal account will be discovered with the documents he has to provide before the hearing.

I won't speak for everyone, but I was really confused it wasn't listed because literally every single tip, which typically accounts for half or more of his monthly Twitch income, goes through that account. So for him to list an empty savings account and a single checking account with $400ish...while also listing an income of more than $9000 a month for several months...that just doesn't make sense.

I do hope the trustee does even basic fact-finding on his accounts though. His shit doesn't add up.

 

[Schrödinger's Kat]

He is so screwed. He certainly can't afford an attorney if he needs a payment plan for a $335 filing fee.

I was thinking this as well. But its more likely that he's just so pathetic that he literally has to delay any payment to anything as much as possible, or pay the absolute minimum over the longest period of time, so he has more to put into his mobile games *right now* or whatever. Its why he loves tips so much because he can use them immediately. Its why he's in this situation to begin with. And, its why, even if he gets this bankruptcy claim, I'm sure he'll just be counting down the days until he can file again with another $500K of debt.

 

[Plastic Love]

Correct if I'm wrong. By going through the form again, I gather that Phil is planning to keep EVERYTHING that he owns except the CT condo. Seriously, everything that he has in Washington is claimed as exempt.

That seems to be the plan. Keep the WAkhando and car, ditch the CT condo, let the creditors take some junk from his house, and *poof* most debts are gone. Maybe that is why Phil said he would be in the clear after a few months. He thinks this goes thru and hes home free. I have to think the creditors and courts aren't that stupid though.

 

[Authentic Sauce]

I won't speak for everyone, but I was really confused it wasn't listed because literally every single tip, which typically accounts for half or more of his monthly Twitch income, goes through that account. So for him to list an empty savings account and a single checking account with $400ish...while also listing an income of more than $9000 a month for several months...that just doesn't make sense.

I do hope the trustee does even basic fact-finding on his accounts though. His shit doesn't add up.

I think it is a reasonable question about where his cash has gone over the past couple months. He hasn't been paying the CT mortgage and he probably stopped paying all or most of this credit cards after he first met with the attorney. Although if he stopped paying his bank of america card they might have tapped his checking account. His attorney should have advised him to spend his cash within reason prior to the filing to get it low because from what I can tell only $200 would be protected through the wildcard exemption.

***Edit: Think we can confirm he stopped paying everything but the Wakando and the Toyota loan. On pages 35 and 36 (part 3, question 6), he lists who he has paid more than $600 to in the past 90 days and they are the only ones, none of the credit cards are listed.

 

[Surly Muppet]

He is going nuts about the bankruptcy on the stream tonight.

But most importantly, he finally just flat-out said "I said up front, going into this, I need to keep my house. So, whatever is going to do that, that's what we need to do. And, you know, worst case scenario, if things through this filing... get found out that, you know <stuttering jibberish> no Chapter 7, then I would just do the other one."

So basically, this was doing whatever needed to be done to qualify for Chapter 7 to keep the house, and Phil's plan if called on this being bullshit is to just turn around and file for Chapter 13 like it's no big deal.