[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

[PutridElephant]

So what does this mean for us tards in the audience?

We'll find out if his consoles are really $1500 at garage sale prices.

 

[Pepper Jack]

If Nancy orders a home appraisal, will that show up on PACER?

 

[c-beams]

So what does this mean for us tards in the audience?

I'm just as much a part of the audience as you, honestly. But from my understanding, it means the following:
1. Phil filed his Chapter 7 bankruptcy petition as a "No-asset" case, telling the court that all of his assets were exempt from liquidation.
2. The trustee (or court) has determined this to be wrong and has changed his Chapter 7 case to be an "Asset" case. This means Phil has assets that are not exempt from liquidation and can be used to pay back creditors. What those assets are is yet TBD.

TL;DR as someone mentioned: Phil is fucked. They are going to investigate his life, his earnings, his assets to figure out his true worth. This is a process that can take months to years. If they don't want to go that route, they can either dismiss his case (unlikely imo) or convert it into a Chapter 13 and force him to pay his creditors through a payment plan.

 

[AnOminous]

From what I read, Nancy has 30 days to make her report and investigations can carry on after that.

The pending statuses says 5 days after 3/31/2020 which is today, so tomorrow. Unless the docket entry itself counts as the report, we'll see something of some sort tomorrow.

 

[PutridElephant]

Can you imagine if Khet says fuck this, I'm out?

She takes half in the divorce, creditors take the other half. Phil gets a cardboard box if he's lucky.

 

[AnOminous]

Can you imagine if Khet says fuck this, I'm out?

She takes half in the divorce, creditors take the other half. Phil gets a cardboard box if he's lucky.

He's probably sold her some bullshit story about the bankruptcy being nothing, assuming he hasn't outright lied to her about even being bankrupt. It's hard to imagine how anyone can be as dumb as this woman, but maybe he's doing that.

 

[c-beams]

He's probably sold her some bullshit story about the bankruptcy being nothing, assuming he hasn't outright lied to her about even being bankrupt. It's hard to imagine how anyone can be as dumb as this woman, but maybe he's doing that.

Imagine his face when the trustee forces the sale of his Wakhando in order to pay back his creditors. From my understanding, it is only the equity that in the home is exempt, not the home itself. Time is running out for Khet to bail. if Phil has less than $125k equity in his house, then the trustee can force it to be sold.

 

[Army Burger]

He's probably sold her some bullshit story about the bankruptcy being nothing, assuming he hasn't outright lied to her about even being bankrupt. It's hard to imagine how anyone can be as dumb as this woman, but maybe he's doing that.

I thought owls were supposed to be wise, but maybe she'll fly the coop when she gets the full picture.

 

[Sir Wesley Tailpipe]

I thought owls were supposed to be wise, but maybe she'll fly the coop when she gets the full picture.

Who?

 

[Mr. Brown]

I wouldn't get too excited yet, doesn't the asset case mean they could simply take his Connecticut kahndo without taking the WAKahndo or anything else that's exciting?

Edit: I'm just an autist on the internet, this could of course be wrong.

 

[DarkSoulsPhil]

Imagine his face when the trustee forces the sale of his Wakhando in order to pay back his creditors. From my understanding, it is only the equity that in the home is exempt, not the home itself. Time is running out for Khet to bail.

And 125k of equity isnt going to be 125k for long.

Post bankruptcy spending wont be discharged, midfirst may take a slice and his own spending habits will leave him with less to show for 10 years of saving

 

[Mr. Brown]

I'm just as much a part of the audience as you, honestly. But from my understanding, it means the following:
1. Phil filed his Chapter 7 bankruptcy petition as a "No-asset" case, telling the court that all of his assets were exempt from liquidation.
2. The trustee (or court) has determined this to be wrong and has changed his Chapter 7 case to be an "Asset" case. This means Phil has assets that are not exempt from liquidation and can be used to pay back creditors. What those assets are is yet TBD.

TL;DR as someone mentioned: Phil is fucked. They are going to investigate his life, his earnings, his assets to figure out his true worth. This is a process that can take months to years. If they don't want to go that route, they can either dismiss his case (unlikely imo) or convert it into a Chapter 13 and force him to pay his creditors through a payment plan.

We already knew that would be the case though, his car valuation is well over the thresh hold.

I'm hoping for the best and want to see a meltdown stream just like anyone else but I'm predicting he will largely get away with this again.

 

[c-beams]

I wouldn't get too excited yet, doesn't the asset case mean they could simply take his Connecticut kahndo without taking the WAKahndo or anything else that's exciting?

Phil claimed he had no non-exempt assets to pay back creditors with. What this proves is that either the trustee (or the court) determined that was not true. This is very bad for Phil. An asset case means they are absolutely going to make Phil sell his garbage for money in an attempt to pay back as much debt as possible. In order to do that, they're going to have to investigate his finances and assets, which is going to go horribly for Phil.

 

[PutridElephant]

I wouldn't get too excited yet, doesn't the asset case mean they could simply take his Connecticut kahndo without taking the WAKahndo or anything else that's exciting?

Edit: I'm just an autist on the internet, this could of course be wrong.

CTKhando is gone. Apr 10.

Less than a week, this didn't age well at all

 

[AnOminous]

I wouldn't get too excited yet, doesn't the asset case mean they could simply take his Connecticut kahndo without taking the WAKahndo or anything else that's exciting?

No, that's effectively not part of the bankruptcy estate. Midfirst owns that outright at this point, with a much larger debt owed to them than is covered by the value of the property. That's why they're lifting the stay, because none of the other creditors get a bite at that anyway, so the bankruptcy court doesn't care about it.

 

[Salubrious]

I'd like to think DSP spent thousands of dollars on WWE Champions to "make his expenses bigger" instead of taking those thousands of dollars and actually paying down his debts because it's funnier.

Realistically though, I don't think it makes any sense even for DSP for that to be the primary reason. I think the reason is because he's a fucking moron and thought that once he stopped paying his credit cards that he has more "disposible income" now.

I think the extra money into the mobile games is the result of DSP no longer needing to pay his credit cards in the short term. That freed up $3000/month.

 

[TankMelee]

I wouldn't get too excited yet, doesn't the asset case mean they could simply take his Connecticut kahndo without taking the WAKahndo or anything else that's exciting?

Edit: I'm just an autist on the internet, this could of course be wrong.

Absolutely minimally, it could just be an asset case because his claimed bank accounts exceed $1,500 and they'll take the remainder. Given the trustee's interest in his consoles they'll probably look at everything else though.

 

[AnOminous]

Absolutely minimally, it could just be an asset case because his claimed bank accounts exceed $1,500 and they'll take the remainder. Given the trustee's interest in his consoles they'll probably look at everything else though.

I really don't think they're buying Phil's "the cat eats $5,000 a month of business expenses" bullshit.

 

[architect]

I just want this to get converted to Ch. 13 (because he understated his income) or dismissed with prejudice (because of the fraudulent way he achieved that lower income). People e-mailing the trustee with all these stories about statues, electronics and fancy househould appliances might fuck this up for us. Sure we'll get some laughs if his shit gets taken and sold, but we're looking at multiple years of prime lolcow material if he's put on a payment plan or gets eaten alive for ALL his debts.

 

[c-beams]

Fun little nuggets of information from uscourts.gov on bankruptcy:

Between 21 and 40 days after the petition is filed, the case trustee (described below) will hold a meeting of creditors. [...] The debtor must attend the meeting and answer questions regarding the debtor's financial affairs and property. [...] Within 10 days of the creditors' meeting, the U.S. trustee will report to the court whether the case should be presumed to be an abuse under the means test described in 11 U.S.C. § 704(b).

11 U.S.C. § 704(b) points to 11 U.S.C. § 707 which lays out the means test for determining a presumption of abuse. There are a lot of criteria listed, much of which is based on math. We all know that Phil and math don't go together.

According to the above, we should get the abuse determination tomorrow (10 days from the creditors meeting).

EDIT: More clarification, there is an actual means test worksheet which you can find here:

Chapter 7 Means Test Calculation

This is an Official Bankruptcy Form. Official Bankruptcy Forms are approved by the Judicial Conference and must be used under Bankruptcy Rule 9009.

www.uscourts.gov

If anyone wants to actually plug the numbers in, it'd be interesting to see what you'd come out with. This is the test the trustee will use to determine whether or not there is a presumption of abuse.

Here is a brief description of what the means test is and why it's there:

When Congress decided in 2005 to overhaul the bankruptcy laws, it had been more than 25 years since the bulk of the bankruptcy code had undergone any significant revisions. By 2005, Congress had become concerned that too many people were filing Chapter 7 bankruptcy and discharging debts that they could otherwise afford to pay outright or through a Chapter 13 repayment plan. The overhaul became the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). Congress built in several provisions that were designed to discourage filers who could still make payments on unsecured debts like medical bills, payday loans, and credit card balances.

One of those provisions became what we call "the means test."

The means test is a calculation designed to determine if you have any money left over at the end of the month—money that could presumably go toward paying down your unsecured debt. If you do, that's considered "failing" the means test. When that happens, you're expected to either abandon your bankruptcy efforts or file a Chapter 13 repayment plan case instead.

If you decide to go forward with a Chapter 7 case anyway, you are doing so under the "presumption of abuse." The presumption is that you can afford to pay some of your unsecured debt, but you're choosing not to by filing the Chapter 7 case. That, Congress deems, may be an abuse of the bankruptcy system. May is the operative word here—at least at this point in the process.