[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

[Chilson]

To add to DSP's pigroach luck, the coranavirus is actually having a drastic impact on the housing market (especially Seattle) due to a large percentage of home construction materials coming from China. Meaning supply is only going to get lower which would in theory further push up the value on the wakando. However, as with all of DSP's "luck", due to the american outbreaks being in Washington (specifically in Seattle) it is feasible that demand will also decrease in his specific area. This might even crash the whole housing market on its head in Seattle specifically.

 

[actually]

To add to DSP's pigroach luck, the coranavirus is actually having a drastic impact on the housing market (especially Seattle) due to a large percentage of home construction materials coming from China. Meaning supply is only going to get lower which would in theory further push up the value on the wakando. However, as with all of DSP's "luck", due to the american outbreaks being in Washington (specifically in Seattle) it is feasible that demand will also decrease in his specific area. This might even crash the whole housing market on its head in Seattle specifically.

If his home value goes up, that makes it harder for him to keep. That's not good luck for him.

 

[Chilson]

If his home value goes up, that makes it harder for him to keep. That's not good luck for him.

If he is keeping his home at its current value then he is going to keep it regardless because his creditors are clearly not doing any research on the actual value of the wakando either way in this hypothetical scenario.

If he does have to sell it, than it having a higher value would actually benefit him even if he is seething over it (and we know he will).

 

[actually]

If he is keeping his home at its current value then he is going to keep it regardless because his creditors are clearly not doing any research on the actual value of the wakando either way in this hypothetical scenario.

If he does have to sell it, than it having a higher value would actually benefit him even if he is seething over it (and we know he will).

Sure, but selling it is literally the thing he wants to avoid. Obviously it is the smartest move, but we're talking about Phil here

 

[AnOminous]

If his home value goes up, that makes it harder for him to keep. That's not good luck for him.

If his home value goes down, it could go down enough it's exempt.

 

[DiabeticSP]

Even if Corona shot up the value of his home 3000% he wouldn't sell so the distinction is pointless.

And unless he sells the house before the virus is contained/treated the market would drop back out.

Its just like the delay in courts (yes I know Phil isnr actually affected by this, just an example) unless they stay closed past his appearance date it doesnt actually push him back at all.

He's on the clock. And every single penny this fuckboy spends. between now and then is nondischargeable.

 

[MarilynMonster]

If he is keeping his home at its current value then he is going to keep it regardless because his creditors are clearly not doing any research on the actual value of the wakando either way in this hypothetical scenario.

If he does have to sell it, than it having a higher value would actually benefit him even if he is seething over it (and we know he will).

at some point after dave actually shows up for his 341 meeting not only will the trustee use multiple online resources, but they will also send an appraiser to the wakahndo to asses it's value.

 

[AnOminous]

Even if Corona shot up the value of his home 3000% he wouldn't sell so the distinction is pointless.

It isn't up to him at this point.

 

[actually]

If his home value goes down, it could go down enough it's exempt.

Since there's some downtime anyway, what is the cutoff time-wise for setting the condo's value? When the trustee decides? In other words, if in the next month (hypothetically) the value increased $50,000, could the trustee pull that value and hold it there even if it dropped some before the bankruptcy proceeded?

 

[Richard Harrow]

Since there's some downtime anyway, what is the cutoff time-wise for setting the condo's value? When the trustee decides? In other words, if in the next month (hypothetically) the value increased $50,000, could the trustee pull that value and hold it there even if it dropped some before the bankruptcy proceeded?

According to this website,
"...you’ll be asked to provide the “current value” of your home on the date that you file for bankruptcy."
"...your valuation isn’t the deciding factor. The bankruptcy trustee appointed to oversee your case will also be determining the value of your home, as well. If there’s a disagreement, a bankruptcy judge will review the basis for both valuations and make a final decision."

Edit (Addition): To me this implies that there might be some room for argument here if there are any substantial changes in the value of the home.

 

[AnOminous]

According to this website,
"...you’ll be asked to provide the “current value” of your home on the date that you file for bankruptcy."
"...your valuation isn’t the deciding factor. The bankruptcy trustee appointed to oversee your case will also be determining the value of your home, as well. If there’s a disagreement, a bankruptcy judge will review the basis for both valuations and make a final decision."

Edit (Addition): To me this implies that there might be some room for argument here if there are any substantial changes in the value of the home.

Apparently this isn't decided everywhere but at least one court has said that if a property (part of the bankruptcy estate) appreciates in value during the bankruptcy, the increased value is also property of the bankruptcy estate.

What Happens to My Home Equity after I Convert my Chapter 13 Bankruptcy to Chapter 7? - The Law Offices of John W. Lee, P.C.

Occasionally, during a Chapter 13 bankruptcy, one may find that they have a significant life change that causes them to need a modification to their monthly plan payments. While it is possible to alter the plan and keep you in the Chapter 13 bankruptcy, there are times where a Chapter 13 will no...

hamptonroadslawfirm.com

Somewhat surprisingly that's only been decided as recently as 2015.

 

[Arrakis Sandworm]

The way I understand it is that Chapter 13 would actually be safer for keeping his house. Due to the nature of Chapter 13 setting up a monthly payment plan, I am pretty sure they don't target your assets as much with Chapter 7.

Chapter 7
Pros: Expel debt
Cons: Your assets at risk

Chapter 13
Pros: Less risk of asset forfeiture
Cons: Large monthly payments to the Trustee

From what I have read most Chapter 13's keep their properties.

 

[King Daddy Telomerase]

Chapter 13 would be best for Phil keeping his khando. The problem is ~75% of normal humans fail Chapter 13s. That equates to a 99.99% probability Phil would fail.

 

[Arrakis Sandworm]

Chapter 13 would be best for Phil keeping his khando. The problem is ~75% of normal humans fail Chapter 13s. That equates to a 99.99% probability Phil would fail.

Especially with Ch.13 payments in addition to his tax payments.

 

[tzgnilki]

The way I understand it is that Chapter 13 would actually be safer for keeping his house. Due to the nature of Chapter 13 setting up a monthly payment plan, I am pretty sure they don't target your assets as much with Chapter 7.

Chapter 7
Pros: Expel debt
Cons: Your assets at risk

Chapter 13
Pros: Less risk of asset forfeiture
Cons: Large monthly payments to the Trustee

From what I have read most Chapter 13's keep their properties.

we were all convinced he'd go chapter 13

however, he wants to discharge his debt without losing his assets or making any payments towards creditors

he only wants the pros of each chapter and thinks he'll get it

 

[DiabeticSP]

Hypothetically speaking, if the trustee approves the chapter 7 BUT takes the WAkondo due to her revised evaluation.

Can Phil then decide to chapter 13? Or by that point is it too late in the process.

 

[AnOminous]

Hypothetically speaking, if the trustee approves the chapter 7 BUT takes the WAkondo due to her revised evaluation.

Can Phil then decide to chapter 13? Or by that point is it too late in the process.

If you filed an action you can dismiss it too. Usually it would be without prejudice. They might make it with prejudice if you were one of the many debtors who fuck around with your creditors by repeatedly filing for bankruptcy then dismissing it again when it starts going poorly for you. He could move to convert to Chapter 13 but they could refuse to allow it.

 

[Richard Harrow]

Hypothetically speaking, if the trustee approves the chapter 7 BUT takes the WAkondo due to her revised evaluation.

Can Phil then decide to chapter 13? Or by that point is it too late in the process.

According to what I read here, "It is relatively easy to convert your case in most courts. Many courts say that you are entitled to convert, even if one of your creditors or the trustee objects." Many courts also say that conversions to 13 (assuming you qualify) can even be done without a hearing. If you read the description for what prevents a conversion, you'll see an interesting term: Bad Faith, which I chuckled as soon as I read it.

 

[Watamelon]

Phil doesn't just have the foreclosure in Connecticut, he has a mortgage on the WAkondo too. Secured creditors get antsy when you declare bankruptcy and someone else is foreclosing on you on another property. His mortgage agreement (that he probably hasn't read) might even allow them to foreclose immediately if he can't pay off the entire balance on a triggering event like a bankruptcy. He is stupid and probably doesn't know whether there even is such a clause.

If you were already suspicious of the pigroach and worried he might default on your loan like he's defaulting on every other loan, even if he hasn't yet, you might be inclined to take advantage of that acceleration clause. If the pigroach then just blows off the first hearing after declaring bankruptcy, you probably decide it's time to do just that.

Blowing this off is the single dumbest thing the pigroach could have done.

Love your posts btw. They make it really easy to understand DSPs case despite not living in the land of the bald eagle.

And I hope Jeff is ready to step up in that case lmao

 

[AnOminous]

According to what I read here, "It is relatively easy to convert your case in most courts. Many courts say that you are entitled to convert, even if one of your creditors or the trustee objects." Many courts also say that conversions to 13 (assuming you qualify) can even be done without a hearing. If you read the description for what prevents a conversion, you'll see an interesting term: Bad Faith, which I chuckled as soon as I read it.

There's more than a whiff of bad faith already. I think they'd let him do this at least once, though, and possibly even more times. It's also possible he can't come up with a plausible Chapter 13 plan, though. It's hard to know what's exactly best for the creditors here, although I think it's pretty likely they'd prefer Chapter 13. Phil, though, might completely lose his shit if Chapter 7 turns out to require selling the kahndo.