[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

[Salubrious]

Business fines tend to be quite a bit higher than personal fines. If he's hurting to pay the $350 filing fee, a multiple thousand dollar fine would be very difficult for him to deal with.

He's not hurting for money; he just refuses to pay anyone. That's why he's bankrupt - the guy grossed at least $10k/month and paid everyone the bare minimum he had to. Then when the interest between his credit cards and two houses got to $4k/month, he either stopped being able to juggle everything or stopped caring and figured that bankruptcy was a get out of jail free card because he's a fucking idiot. You can tell by the way he STILL talks that he thinks the government can't take his precious stuff because "he needs it."

 

[Hungrymandinner]

Whatever the outcome, it will be entertaining.

If Phil wins, the reality show continues. I’ve seen a lot of trash reality shows, from Bridalplasty to 90 Day Fiancé to Love is Blind. They are at their best when they are unscripted, and that is extremely rare nowadays. The only show that has been consistently more entertaining for me than the Darksydephil show is Whale Wars, which is sadly off the air. Phil will have no choice but to continue to broadcast his life.

If Phil loses, we will likely get to witness his sad life fold in on itself.

My only complaint with this show is that it has more filler episodes than fucking Naruto.

 

[Salubrious]

I don't know if any paypig has asked this, or if they did they were probably immediately banned, but where the fuck is all of his 2015 and 2016 money?

DSP's big argument is that he got into debt with the Washington move and the trolls then fucked with his income. He moved to Washington in 2014. In 2016, he was still with Machinima, he hadn't fapped on stream yet, and I think it was still pre "false copyright strikes". So there was two whole years where the trolls hadn't "messed with his income" yet. And if he is making $10k/month now, he was probably making $20k/month then. Why didn't he pay the debt back then? Where the hell is that money?

I mean, I know why and where, but what is his magical retelling of history there?

 

[Beetus Knuckles]

This isn't guaranteed to be the only meeting before his bankruptcy forms are passed off to a judge. This meeting always happens. Any given creditor can set up additional, much more intensive meetings if the trustee agrees more information is needed to protect the integrity of the bankruptcy system.

This is what I said a few pages back. If the trustees or creditors want to dig deeper, the 341 could be continued. IMO, if it’s not for one of a few typically benign reasons (i.e. forgot to bring driver’s license or proof of SSN), that’s a bad sign. The bankruptcy court works pretty smoothly to minimize time and expense for all parties. When a creditor shows up, it’s usually because they mistakenly thought they needed to be there (a mom and pop landlord who gets a bankruptcy notice), they’re representing a secured debt and trying to get a reaffirmation agreement signed, or they’ve done the math and read between the lines and think they can object (which rarely happens at the 341). After the 341 in a Chapter 7, the clock starts on the 60 day deadline to object to the discharge of a specific debt or the entire bankruptcy. So he’ll have at least another couple months to stew and worry even if the 341 goes smoothly.

 

[tzgnilki]

I don't know if any paypig has asked this, or if they did they were probably immediately banned, but where the fuck is all of his 2015 and 2016 money?

DSP's big argument is that he got into debt with the Washington move and the trolls then fucked with his income. He moved to Washington in 2014. In 2016, he was still with Machinima, he hadn't fapped on stream yet, and I think it was still pre "false copyright strikes". So there was two whole years where the trolls hadn't "messed with his income" yet. And if he is making $10k/month now, he was probably making $20k/month then. Why didn't he pay the debt back then? Where the hell is that money?

I mean, I know why and where, but what is his magical retelling of history there?

I know he likes to recite that he used his savings for the down payment on the house

 

[James Smith]

And if he is making $10k/month now, he was probably making $20k/month then.

This is what I want to know more about. I'm hoping out of all of this we get tidbits of under-oath information about his highest incomes etc.

I know he likes to recite that he used his savings for the down payment on the house

Yeah the whole 3% down payment. He was still refusing to pay any more than the bare minimum. Interest be damned, that's a problem for future DSP not current DSP.

Is Phil really not obligated to put down any amount for “Family Support”?

Family support isn't literally money he gets from family.

 

[BScCollateral]

What's so ridiculous about this is blowing that much on a mobile game. If it turned out he blew $40k going to Antarctica three times, I'd at least be able to nod and think, "Unwise, but understandable."

Maybe that's just my prejudices, though.

 

[AnOminous]

Business fines tend to be quite a bit higher than personal fines. If he's hurting to pay the $350 filing fee, a multiple thousand dollar fine would be very difficult for him to deal with.

I don't know that he actually can't pay a $350 filing fee. I think most bankruptcy filers do that even if they don't need to because it looks better to claim they can't even pay the filing fee. It's like walking in with a neck brace to a disability hearing.

Sounds about right. I did a bit more research into these types of meetings, and there was one scenario that seemed possible and piqued my interest a bit.

Any of the creditors even showing up would be about the most interesting thing likely to happen at this usual non-event. Even if they don't do anything but sit there.

You can tell by the way he STILL talks that he thinks the government can't take his precious stuff because "he needs it."

Despite his absurd income and spartan lifestyle, almost everything he possesses is completely worthless trash, like everything he streams on. It's out of date worthless junk. That's why his creditors will need to go after the equity in his home that exceeds the exemption. I'm sure he has something that could be sold off but it would be more to pressure him by inconveniencing him than that they're getting their money back that way.

 

[Freshtodeath]

The only thing of value he has, other than his car would be game consoles and old games. All his statues are broken so they wouldn't sell for much. He might have some harder to find old games, I know he has almost all the mega man games. Would those old consoles be protected under his business? lol I mean he might as well just sell that stuff. He also has that 500 dollar keurig.

 

[Schrödinger's Kat]

Phil was supposed to provide his tax return no more than 7 days before his 341 hearing. He hasn't even done his taxes for 2019 and the meeting is 5 days away. Looks like he'll have some pigsplaining to do.

(A)The debtor shall provide—
(i)
not later than 7 days before the date first set for the first meeting of creditors, to the trustee a copy of the Federal income tax return required under applicable law (or at the election of the debtor, a transcript of such return) for the most recent tax year ending immediately before the commencement of the case and for which a Federal income tax return was filed; and

(B)
If the debtor fails to comply with clause (i) or (ii) of subparagraph (A), the court shall dismiss the case unless the debtor demonstrates that the failure to so comply is due to circumstances beyond the control of the debtor.

11 U.S. Code § 521 - Debtor’s duties

www.law.cornell.edu

 

[Kosher Dill]

Someone should suggest to Phil that he refuse to speak above a whisper at the 341 hearing so those mentally ill sociopaths in the lahlcow community won't get any material from the court's audio recording.

 

[Freshtodeath]

how do taxes work for a business when your personal life expenses make you break even? It seems DSP is having a lot of issues with this.

 

[Schrödinger's Kat]

how do taxes work for a business when your personal life expenses make you break even? It seems DSP is having a lot of issues with this.

You see, Phil is a mature adult with a business degree and he knows how it works better than all of us idiot detractors:

Phil runs a business, in order to make money, Phil needs to stay alive an that involves eating. So everything he eats is a business expense.

Phil also needs to sleep, so his bedroom is an expense. He also needs to take a shit during every stream, so his bathroom and toilet paper are expenses as well. Actually, if Phil didn't have a kahndo, he wouldn't be able to run his business, so the entire kahndo costs are also business expenses.

And if Phil didn't pay his taxes, he'd go to jail and wouldn't be able to run his business, so those are expenses too.

Phil is human and needs relaxation time to survive, so bottles of gin and WWE Champions are also business-related expenses.

In fact, since in a sole proprietorship a business and its owner are technically the same, anything Phil spends money on is technically a business expense.

So there you go.

 

[AnOminous]

Phil was supposed to provide his tax return no more than 7 days before his 341 hearing. He hasn't even done his taxes for 2019 and the meeting is 5 days away. Looks like he'll have some pigsplaining to do.

11 U.S. Code § 521 - Debtor’s duties

www.law.cornell.edu

Good catch.

(B)
If the debtor fails to comply with clause (i) or (ii) of subparagraph (A), the court shall dismiss the case unless the debtor demonstrates that the failure to so comply is due to circumstances beyond the control of the debtor.

"Shall" indicates that it's mandatory unless he proves circumstances beyond his control. They'll expect more than "nothing I could do dood."

 

[actually]

Good catch.



"Shall" indicates that it's mandatory unless he proves circumstances beyond his control. They'll expect more than "nothing I could do dood."

How is tax year defined for this? Is it the calendar year 2019? Seems like it would be unfair to expect someone who files for bankruptcy in January to provide the tax return so fast. Although I guess with the 341 meeting set so far in advance, the court could argue he was given more than enough notice such that he had time to do it.

 

[Schrödinger's Kat]

How is tax year defined for this? Is it the calendar year 2019? Seems like it would be unfair to expect someone who files for bankruptcy in January to provide the tax return so fast. Although I guess with the 341 meeting set so far in advance, the court could argue he was given more than enough notice such that he had time to do it.

I'm not sure either. I assume it would be for 2019 since that is the most recent completed tax year. Tax returns are "due" April 15 but there is no reason why you can't file earlier if you have all your financial documents available (which he would since he's not waiting for 1099's or W-2s). Its my understanding that when filing for bankruptcy, timing is important, and having taxes done on time is probably one aspect of that.

I'm guessing Phil probably sent his 2018 return to the trustee, but since he's in a rush to do his 2019 taxes, his attorney may have already let him know that it wasn't good enough and that he needs the 2019 done ASAP.

Although wouldn't him submitting the tax return would show up on his court docket?

 

[Beetus Knuckles]

If he can pigsplain it (I owe dood, drop by muh stream to interact, chill, and contribute), he might be able to go on if the trustee sees that he likely owes. This might also lead to his 341 being continued so he can get his return filed. This rule is in place so that if he was owed a return, it could be made part of the bankruptcy estate. There’s so much variability between districts and trustees that it is hard to say. I want to lean toward his 341 going on as scheduled, but it could easily be continued. Every month that passes while he’s under the automatic stay is more HOA fees, property taxes, and insurance premiums that he owes on the CONNdo.

 

[AnOminous]

How is tax year defined for this? Is it the calendar year 2019? Seems like it would be unfair to expect someone who files for bankruptcy in January to provide the tax return so fast. Although I guess with the 341 meeting set so far in advance, the court could argue he was given more than enough notice such that he had time to do it.

I'm actually not sure, maybe he doesn't need this year's yet. One would hope that would be one of the few things he actually is owed by his so-called lawyer.

 

[JamFlowMan]

He also needs to take a shit during every stream, so his bathroom and toilet paper are expenses as well.

He said at least once because he takes a shit break every stream he gets to write off the water used for the bathroom. Not even saying he's wrong but just one of those examples where Phil blurs the line between reality and parody.

 

[actually]

He said at least once because he takes a shit break every stream he gets to write off the water used for the bathroom. Not even saying he's wrong but just one of those examples where Phil blurs the line between reality and parody.

I hope he was being sarcastic because that would rank among the dumbest things he has ever said otherwise.