[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

[SaidNoOneEver]

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

The biggest variable is how busy the bankruptcy court is. That will determine how much scrutiny his filing gets. If this was 2008/2009 it would've already been rubber-stamped. If it's a slow day there's a higher likelihood of the judge allowing the creditors to crawl up his ass.

I'm in the camp that doesn't see him keeping the WA condo. The paper value is too obviously manipulated. It would be outrageous to force the other creditors to eat upwards of a quarter-mill that he squandered while allowing him to remain in a $400k residence.

I'm confused about the other condo. Does anyone know what the original price he paid for it was and when? How long has he been paying for it and how much has he paid so far for it to be so underwater?

 

[Synth]

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.

That's fucking retarded. Just because you can write something off doesn't mean it's free. You're never going to save money buying an extra thing and getting to write some of it off vs. not buying that extra thing at all. That's not how it works at all. When you write something off, a portion of it is exempt from being taxed. Think of charitable contributions, right? You can write those off. If you would get all the money back from write-offs, then that's basically free money to give to charity and there's no reason not to, because the government will cover it, and you just have free money floating around. That's not how it works. You get a small portion of the money donated exempted.

 

[SaidNoOneEver]

That's fucking exceptional. Just because you can write something off doesn't mean it's free. You're never going to save money buying an extra thing and getting to write some of it off vs. not buying that extra thing at all. That's not how it works at all. When you write something off, a portion of it is exempt from being taxed. Think of charitable contributions, right? You can write those off. If you would get all the money back from write-offs, then that's basically free money to give to charity and there's no reason not to, because the government will cover it, and you just have free money floating around. That's not how it works. You get a small portion of the money donated exempted.

It makes sense once you factor in the expense of separating everything come tax-time. Co-mingling personal and business is a red-flag that can lead to very expensive problems in the future. It really depends on the cost of the separate office and how much revenue is generated. Running a small-time soap business out of the house makes sense while at the same time Joe Rogan renting a separate studio space to run his podcast empire out of does too.

 

[Synth]

It makes sense once you factor in the expense of separating everything come tax-time. Co-mingling personal and business is a red-flag that can lead to very expensive problems in the future. It really depends on the cost of the separate office and how much revenue is generated. Running a small-time soap business out of the house makes sense while at the same time Joe Rogan renting a separate space to run his podcast empire out of does too.

No, it doesn't make any sense. You're only ever going to spend more money by buying things with the intent to keep them separate. Even if it's something as arbitrary as a printer, the cost of two printers with one of them being a tax write off is always going to be more expense than buying a single printer and writing off a smaller portion of it because it's not used exclusively for business purposes. Over time, it's possible you'll save money because of maintenance issues for certain things and shit like that, but you're pretty much always going to be spending more money just to have separate "business" stuff that you can write off a larger percentage of. You still have to own two of the things instead of just one.

 

[tzgnilki]

The biggest variable is how busy the bankruptcy court is. That will determine how much scrutiny his filing gets. If this was 2008/2009 it would've already been rubber-stamped. If it's a slow day there's a higher likelihood of the judge allowing the creditors to crawl up his ass.

I'm in the camp that doesn't see him keeping the WA condo. The paper value is too obviously manipulated. It would be outrageous to force the other creditors to eat upwards of a quarter-mill that he squandered while allowing him to remain in a $400k residence.

I'm confused about the other condo. Does anyone know what the original price he paid for it was and when? How long has he been paying for it and how much has he paid so far for it to be so underwater?

I think he paid $130,000 for it, and still owes $100,000

 

[SaidNoOneEver]

No, it doesn't make any sense. You're only ever going to spend more money by buying things with the intent to keep them separate. Even if it's something as arbitrary as a printer, the cost of two printers with one of them being a tax write off is always going to be more expense than buying a single printer and writing off a smaller portion of it because it's not used exclusively for business purposes. Over time, it's possible you'll save money because of maintenance issues for certain things and shit like that, but you're pretty much always going to be spending more money just to have separate "business" stuff that you can write off a larger percentage of. You still have to own two of the things instead of just one.

Again, it depends. To use your printer analogy if the business requires a $15k MFP printer to send out hundreds of mailings a month it doesn't make sense to buy it for personal use instead of just a pesonal $100 inkjet. Also consider the cost of consumables like toner and paper and the expense of your lawyer's billable hours come tax season when he's trying to figure out how much ink you used for yourself versus the business. That gets real expensive real quick. Like I said, it all depends on the circumstances.

I think he paid $130,000 for it, and still owes $100,000

Jesus, did he get an ARM during the bubble times? From what I gather (which is admittedly not much, only started following this hilarious saga about a month ago) he's been paying a mortgage on it for 10 years and still no where near paying it off. He seems to still owe more after a decade of payments than its current market value which seems hard to believe. I'd love to see those numbers.

I used to be big into documenting/exposing online scams, especially the low-hanging fruit of OTC stock scams. Gave it up because they always seemed to get away with it even after being caught and exposed - often even after being criminally charged. So everyone should keep their expectations low. One of the last ones that I worked scammed several million before being charged by the SEC. His mansion was foreclosed on two years ago but he's been able to delay that and has been living in it rent free for all this time. He also declared bankruptcy and has successfully delayed that for two years while not paying any of his bills. The SEC gave him a slap on the wrist, basically just making him promise not to do it again for 5 years (common SEC "punishment"). Of course that guy could afford a good lawyer and that makes all the difference. DSP may be different though since his lawyer won't be doing any heavy lifting for him.

 

[Salubrious]

Jesus, did he get an ARM during the bubble times? From what I gather (which is admittedly not much, only started following this hilarious saga about a month ago) he's been paying a mortgage on it for 10 years and still no where near payinig it off. He seems to still owe more than its current market value which seems hard to believe. I'd love to see those numbers.

One of the legit bad pieces of luck is that he bought the CT condo right before the housing bubble burst, so the value in that condo did drop from $130K to $60K. That's why he's still underwater after 12 years.

But since the reason he bought that condo was to try to get into the pants of the woman selling it who also had a boyfriend at the time, nobody has any sympathy for him.

Also, we have speculated that the reason he didn't sell the CT condo before moving was because he was hoping it would magically go back up to $130K some day and he didn't want to just eat the loss and move on. This was at peak Youtube revenue, so even though a $40K loss obviously hurts, he was probably making $300K/year on his Machinima contract.

 

[SaidNoOneEver]

...we have speculated that the reason he didn't sell the CT condo before moving was because he was hoping it would magically go back up to $130K some day ...

If so he should've paid it off early with the decent money he was bringing in. He would've saved tens of thousands in mortgage interest. That's what makes this one so fascinating: the guy is an absolute imbecile. Clinically so. It's a miracle he's even survived to 40, let alone becoming somewhat successful before throwing it all away. Only in America I suppose.

 

[Salubrious]

If so he should've paid it off early

He refuses to pay anything to anyone except the bare minimum that he has to. That's why he's racked up $130K in consumer debt; even at peak incomes DSP never felt the need to pay back anything.

 

[tzgnilki]

Jesus, did he get an ARM during the bubble times? From what I gather (which is admittedly not much, only started following this hilarious saga about a month ago) he's been paying a mortgage on it for 10 years and still no where near paying it off. He seems to still owe more after a decade of payments than its current market value which seems hard to believe. I'd love to see those numbers.

it lines up with a 30yr mortgage

 

[Synth]

Again, it depends. To use your printer analogy if the business requires a $15k MFP printer to send out hundreds of mailings a month it doesn't make sense to buy it for personal use instead of just a pesonal $100 inkjet. Also consider the cost of consumables like toner and paper and the expense of your lawyer's billable hours come tax season when he's trying to figure out how much ink you used for yourself versus the business. That gets real expensive real quick. Like I said, it all depends on the circumstances.

Yeah, but you're talking about a business thing that most people wouldn't have for regular home use. The original idea was the consolidation of home and office space and/or utilities. You will never save money by buying a work space if you can work out of your home, and you are never going to save money by buying separate business utilities if you can use the same ones you use at home and just write off less of it as a business expense. It will always cost you more, every single time, even when it comes to needing to pay someone to do your taxes if that's the case.

It's fucking whatever, though.

 

[harbinger]

It's a miracle he's even survived to 40,

Philip turns 38 in April. Don’t count your eggs before they come home to roost.

 

[Schrödinger's Kat]

Gave it up because they always seemed to get away with it even after being caught and exposed - often even after being criminally charged. So everyone should keep their expectations low.

The difference between these guys and Phil is they have intelligence, money, and know how to game the system. Phil does not.

Phil thinks he can just put his net income down as "Gross" on his bankruptcy filing and no one will notice. He thinks he can just casually forget to list his PayPal account and hide his ridiculous personal spending habits and no one will notice. These are things that will get caught by a piece of software. It doesn't even take an audit to find Phil'ls lies, they are blatantly obvious in black and white. I can only imagine what else he's lying about that we haven't found.

Phil isn't going to jail, but he isn't getting his Chapter 7 and waking away debt free on March 5, either.

 

[tzgnilki]

The difference between these guys and Phil is they have intelligence, money, and know how to game the system. Phil does not.

Phil thinks he can just put his net income down as "Gross" on his bankruptcy filing and no one will notice. He thinks he can just casually forget to list his PayPal account and hide his ridiculous personal spending habits and no one will notice. These are things that will get caught by a piece of software. It doesn't even take an audit to find Phil'ls lies, they are blatantly obvious in black and white. I can only imagine what else he's lying about that we haven't found.

Phil isn't going to jail, but he isn't getting his Chapter 7 and waking away debt free on March 5, either.

do you think he already warned the court about detractors who will be trying to lie about him

 

[Very Honest Content]

It's not that I doubt the competency...Things slip past the cracks all the time, which we've seen in other more important cases noted on this site, and probably in many of our own lives.

I feel similarly for different reasons, the handlers of this in the system are paid the same whether they ferret out the lies in order to legally draw and financially quarter Phil or if DSP pulls the wool over the proceeding's eyes to benefit from the outcome. They have no impetus to perform to the best of their abilities, and, unless they're elected running on a ballot where they're not unopposed, so as having to answer to the taxpayers they draw their pay from the hides of, are insulated from fallout in either outcome.

To be fair, a lot of kiwis have become disenfranchised with judges/court because of the thicc lasagna case over in the weeb wars subforum.

That may very well be true. Personally, I don't follow the weeb war autism and don't factor that at all into my evaluation.

I dont think he will survive bankruptcy.

But if he does, I can't imagine detractors sitting back. They'll probably give him Wings-tier trolling at that point.

How do I know by watching the saga has crossed that Rubicon? What should I look for changing to know the difference between now and then exactly?

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.

And where would the four star gold Hulk Hogan jpg come from in that scenario, huh?

No, it doesn't make any sense...You still have to own two of the things instead of just one.

Technically, in your example, you'd only own one of them and the other would belong to the business that you control, thus you don't own that one, but your math point generally does make sense if you consider the pass through business entity you as well.

Long term best outcome 'win' for watchers such as ourselves is a Chapter 13 conversion is where I've ended up after considering the options. If that's six months after a dismissal or not is kind of immaterial but a dismissal for lies would be the cherry topping result I guess.

 

[Iron Hamster]

do you think he already warned the court about detractors who will be trying to lie about him

If anyone did try to tip anyone off, I'd hope they provided evidence to their claims. Seems there's plenty of video evidence from what I keep reading.

 

[Salubrious]

do you think he already warned the court about detractors who will be trying to lie about him

I think so many pinwheels have emailed the judge trying to warn her about DSP's lies that she's have to remove herself from the case because she's no longer impartial.

 

[SaidNoOneEver]

Phil isn't going to jail, but he isn't getting his Chapter 7 and waking away debt free on March 5, either.

I really do think it depends on the volume of cases the bankruptcy court has to deal with. If it's like traffic court where they just herd them through like cattle he's gonna get away with it. Another factor is how much his creditors want to spend trying to squeeze money from a rock. The only asset worth anything is the WA condo.

 

[James Smith]

His estimate of its worth might be low, but it’s in the ballpark from a commonly used source.

Sure, from literally 4 years ago.

 

[DarkestSydePhil]

If so he should've paid it off early with the decent money he was bringing in. He would've saved tens of thousands in mortgage interest. That's what makes this one so fascinating: the guy is an absolute imbecile. Clinically so. It's a miracle he's even survived to 40, let alone becoming somewhat successful before throwing it all away. Only in America I suppose.

He doesn't make any money, not even a dollar. People outright give him money, what for I will never know because it isn't like he is capable of entertaining anyone by playing video games, let alone himself. No, this is not just America, this is the future for our world we chose.