[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

[tomstone]

i dont know but i have a bad feeling. with his luck he will get chapter 7 and can put the creditcard-, mortgage companies and the irs on his "scammed list".
but atleast we will know then for certain that something like god or karma doesnt exist.

 

[Ching_Chong]

Wouldn't the fact that the valuation (and added on fee) gets him just under the exemption be a little suspicious, especially with all the other errors and how his "expenses" also just happen to get him under the Chapter 7 filing threshold?

I get that the trustee doesn't want to waste time, but if I saw someone who lists gross annual income of $100k+ but also happens to have expenses that gives them the best possible outcome, I'd at least look to see if they could prove it.

I have to assume they do their own homework and check out other evaluations or tax records for the area, right?

 

[MoonRocker]

So, educated guess, what types of things could he be (reasonably) claiming as business expenses that we're not thinking of? Games and equipment are obvious, but he's not purchased any equipment of his own volition since 2017 or 2018 (assuming PS4 Pro and 4K TV were actually gifts). Presumably a fractional amount of the mortgage and electricity as well for the "home office". One of the internet lines that he could classify as "for the business", but not both. The website/forums. Outside of that, what are we missing?

We haven’t missed anything because Phil is notoriously pathetic when it comes to investing back into his “business.”

Let’s say if he had converted his gross streaming room into a fully functional studio with fully padded foam walls, top of the line webcam, beefed up streaming PC, etc. basically what a streamer with the income he produced over the years should have done, that would be a valid and legitimate business expense.

The profit margins of a successful Twitch streamer are extremely good. It’s one of those professions that with a very little initial investment, you can make a lot of money. That’s why it’s easy to cross the lines or personal/ business expenses since your place of business is also your home.

But it shouldn’t exempt this profession from having the same expected rules apply to it from any other job conducted inside your home. And that’s what Phil fails to understand: a content creator does not make you more special than someone who creates custom gift baskets out of their house.

 

[Iron Hamster]

i dont know but i have a bad feeling. with his luck he will get chapter 7 and can put the creditcard-, mortgage companies and the irs on his "scammed list".
but atleast we will know then for certain that something like god or karma doesnt exist.

IRS will not be on the list.

 

[Beetus Knuckles]

Wouldn't the fact that the valuation (and added on fee) gets him just under the exemption be a little suspicious, especially with all the other errors and how his "expenses" also just happen to get him under the Chapter 7 filing threshold?

I get that the trustee doesn't want to waste time, but if I saw someone who lists gross annual income of $100k+ but also happens to have expenses that gives them the best possible outcome, I'd at least look to see if they could prove it.

I hadn’t considered how he is gaming the value and it already deducted realtor commissions. I would wager that he’ll get to keep it, but those factors do work against him. He’ll probably get converted to Chap. 13. I’m interested to see how this plays out.

 

[Collections Agent]

I just want to remind everyone that DSP could be a retired multimillionaire living in a private fenced off mansion due to 10 years of being an asshole online if he had even the smallest amount of business sense or frugality.

 

[Sphadilcastro]

Where does or say these expenses must be business expenses. On the petition form it just says expenses.

 

[millais]

Since the WAkhando is his biggest source of equity, I assume they would scrutinize the valuation a little more closely than just taking his word for it. Plus as already mentioned, his valuation of the condo is obviously manipulated to be just under the exemption limit.

 

[Richard Harrow]

I just want to remind everyone that DSP could be a retired multimillionaire living in a private fenced off mansion due to 10 years of being an asshole online if he had even the smallest amount of business sense or frugality.

At least he got the chair.

 

[tzgnilki]

Where does or say these expenses must be business expenses. On the petition form it just says expenses.

operating expenses

 

[actually]

Where does or say these expenses must be business expenses. On the petition form it just says expenses.

operating expenses

To add a bit to @tzgnilki, there's a separate entry for household expenses, so we know that the "operating expenses" shouldn't include any of that. Basically, Phil is claiming he has between $8000 and $13000 in total expenses every month.

 

[shioq]

Since the WAkhando is his biggest source of equity, I assume they would scrutinize the valuation a little more closely than just taking his word for it. Plus as already mentioned, his valuation of the condo is obviously manipulated to be just under the exemption limit.

oh yeah. won't he have to pay for an appraisal too?

To add a bit to @tzgnilki, there's a separate entry for household expenses, so we know that the "operating expenses" shouldn't include any of that. Basically, Phil is claiming he has between $8000 and $13000 in total expenses every month.

he's only -$35 a month.... well, can't your wife get a full time job?

 

[Schrödinger's Kat]

i dont know but i have a bad feeling. with his luck he will get chapter 7 and can put the creditcard-, mortgage companies and the irs on his "scammed list".
but atleast we will know then for certain that something like god or karma doesnt exist.

I felt this way at first, but after spending more time than I'd like to admit looking at this situation from every which-way, Phil isn't going to pull off a scam of the bankruptcy court.

Phil can lie all he wants on his filing, but his tax returns tell a different story, and this is where he's screwed. As I mentioned in an earlier post, he does not appear to have been writing off $5,000/mo in expenses from his business in 2018. When they pull his tax returns, they're going to see that his business expenses don't match his bankruptcy filing.

This alone could cause his entire filing to be dismissed outright. However, worst case is he gets ordered into Chapter 13. In Chapter 13, based on my own analysis he could be ordered to pay $4,000+ per month, because he has a ton of disposable income. Imagine the absolute bitch-fest we'll hear from him if this happens. It'll be epic.

He is supposed to provide his tax returns and other financial statements to the court, but I'm thinking he is going to wait until the 341 hearing and bring them in person. He doesn't want anyone looking at them ahead of time and figuring out the scam he's pulling. The problem with doing this is it could whole thing getting thrown out or delayed while they trying to put the puzzle pieces together, especially if he gets forced into Chapter 13. This could drag on for some time.

 

[tzgnilki]

I felt this way at first, but after spending more time than I'd like to admit looking at this situation from every which-way, Phil isn't going to pull off a scam of the bankruptcy court.

Phil can lie all he wants on his filing, but his tax returns tell a different story, and this is where he's screwed. As I mentioned in an earlier post, he does not appear to have been writing off $5,000/mo in expenses from his business in 2018. When they pull his tax returns, they're going to see that his business expenses don't match his bankruptcy filing.

This alone could cause his entire filing to be dismissed outright. However, worst case is he gets ordered into Chapter 13. In Chapter 13, based on my own analysis he could be ordered to pay $4,000+ per month, because he has a ton of disposable income. Imagine the absolute bitch-fest we'll hear from him if this happens. It'll be epic.

He is supposed to provide his tax returns and other financial statements to the court, but I'm thinking he is going to wait until the 341 hearing and bring them in person. He doesn't want anyone looking at them ahead of time and figuring out the scam he's pulling. The problem with doing this is it could whole thing getting thrown out or delayed while they trying to put the puzzle pieces together, especially if he gets forced into Chapter 13. This could drag on for some time.

I wonder if he did tell the IRS his monthly expenses were $5,000 a month, would his taxes match up with the $20,000 from 2018 that we know of, that's about the only thing we can compare it to

 

[Schrödinger's Kat]

I wonder if he did tell the IRS his monthly expenses were $5,000 a month, would his taxes match up with the $20,000 from 2018 that we know of, that's about the only thing we can compare it to

That's exactly what I was thinking, and that's exactly how I figured he's wasn't writing those expenses off in 2018. Assuming he's not lying about still owing $15,000 to the IRS for 2018 and is paying $500/mo, you can figure he made somewhere around $120,000 after writing off business expenses in 2018. If he was writing of $5,000/mo, his 2018 taxes would have been much, much lower.

Maybe what he'll try to do is write off that $5K per month in his 2019 return, but it would look really suspicious if his expenses suddenly increase 4x and he had no change in income. That could potentially trigger an IRS audit.

 

[King Daddy Telomerase]

Phil has said his taxes were done incorrectly, and blamed it on the infamous evil tax attorney accountant whatever guy. He may be putting those bogus expenses and who knows what in his returns. That's why I don't totally dismiss the possibility of jail time.

 

[Schmeckel]

Phil has said his taxes were done incorrectly, and blamed it on the infamous evil tax attorney accountant whatever guy. He may be putting those bogus expenses and who knows what in his returns. That's why I don't totally dismiss the possibility of jail time.

It's not that he said his taxes were done wrong, it's more that he DIDN'T do his state taxes. His federal filings were likely ok, but that idiot fucking asshole nudnik tax attorney slash tax accountant in Connecticut didn't do his due diligence and neglected to have him file business and occupation taxes in Washington for a business he may or may not have.

 

[Plastic Love]

It took me a while to catch up on this due to my country being a madhouse, but it seems not much has happened yet other than a notable bankruptcy law firm now following the case and Phil admitting he has PayPal $$$.

I felt this way at first, but after spending more time than I'd like to admit looking at this situation from every which-way, Phil isn't going to pull off a scam of the bankruptcy court.

Phil can lie all he wants on his filing, but his tax returns tell a different story, and this is where he's screwed. As I mentioned in an earlier post, he does not appear to have been writing off $5,000/mo in expenses from his business in 2018. When they pull his tax returns, they're going to see that his business expenses don't match his bankruptcy filing.

This alone could cause his entire filing to be dismissed outright. However, worst case is he gets ordered into Chapter 13. In Chapter 13, based on my own analysis he could be ordered to pay $4,000+ per month, because he has a ton of disposable income. Imagine the absolute bitch-fest we'll hear from him if this happens. It'll be epic.

He is supposed to provide his tax returns and other financial statements to the court, but I'm thinking he is going to wait until the 341 hearing and bring them in person. He doesn't want anyone looking at them ahead of time and figuring out the scam he's pulling. The problem with doing this is it could whole thing getting thrown out or delayed while they trying to put the puzzle pieces together, especially if he gets forced into Chapter 13. This could drag on for some time.

I agree with this and an earlier post by @MoonRocker. Phil has only scammed absolute bottom of the barrel idiots so far in his life (please correct me if I am wrong here) and the fact that some randos on a forum can see through his shit, I have to think paid law professionals will see through it all a mile away. Only question is if the benefits outweigh the effort.

There seems to be a lot of discussion on whether the Ch7 will go through, get converted to Ch13, or get dismissed outright, as well as if he keeps the WAkhando. I am personally hoping they realize hes full of shit, he has a ton of disposable income, and he gets bumped to Ch13 so they can collect their sweet sweet $ and be done with him. The pure agony I can envision Phil enduring when he realizes he can't play WWE, can't dine out everyday, can't pretend to be a big adult business man with lots of $ and cool toys, and can't impulse spend like the addict he is both fills me with glee and gives me a shred, and I mean a tiny sliver, of sympathy for him that he will turn his self destructive behaviors around. We all know the latter isn't going to happen, but the salt most certainly will seep through into his khantent like the lolcow he is.

Only about 2 weeks to go until part 2 begins lads.

 

[tzgnilki]

It took me a while to catch up on this due to my country being a madhouse, but it seems not much has happened yet other than a notable bankruptcy law firm now following the case and Phil admitting he has PayPal $$$.



I agree with this and an earlier post by @MoonRocker. Phil has only scammed absolute bottom of the barrel idiots so far in his life (please correct me if I am wrong here) and the fact that some randos on a forum can see through his shit, I have to think paid law professionals will see through it all a mile away. Only question is if the benefits outweigh the effort.

There seems to be a lot of discussion on whether the Ch7 will go through, get converted to Ch13, or get dismissed outright, as well as if he keeps the WAkhando. I am personally hoping they realize hes full of shit, he has a ton of disposable income, and he gets bumped to Ch13 so they can collect their sweet sweet $ and be done with him. The pure agony I can envision Phil enduring when he realizes he can't play WWE, can't dine out everyday, can't pretend to be a big adult business man with lots of $ and cool toys, and can't impulse spend like the addict he is both fills me with glee and gives me a shred, and I mean a tiny sliver, of sympathy for him that he will turn his self destructive behaviors around. We all know the latter isn't going to happen, but the salt most certainly will seep through into his khantent like the lolcow he is.

Only about 2 weeks to go until part 2 begins lads.

i've tried to think about the bankruptcy going through or not and I put myself into the mind of the average government slave in bankruptcy court

they do thousands of them a year, and are probably on good money for brainless work, just stamping morons through without hesitation, and maybe only the biggest morons get looked at twice

then I start thinking about when and why a pen-pusher would look at an application twice, and that brings me to gayops, if I was one of these pen-pushers, the only reason i'd look at something twice that wasn't an important bankruptcy application, was if someone tipped me off and i'd start contemplating that if I ignored the tip off I could get into shit

dsp should be preparing for the worst and hoping for the best

 

[DiabeticSP]

And this kids is why 'real' streamers buy themselves a studio that's separate from their home.

That way every single penny that goes into their stream can get written off as a business expense.

But I bet most of them form an LLC too, then just pay themselves a paycheck.