[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

[tzgnilki]

This is only a motion for relief from automatic stay. It's so they can auction off the property. At this point we don't even know if they will actually pursue a deficiency judgement when they do auction off the property. That's going to depend on the timeline of Phil's bankruptcy. If Phil's debts are discharged before they can auction the condo, they wouldn't even be able to get a deficiency judgement. If they manage to auction off the property and get a deficiency judgement before Phil's debts are discharged, they essentially become creditors holding an unsecured debt just like the credit card companies.

So we can only speculate why they're being this aggressive. I'm inclined to believe that they think Phil's case will be dismissed and they will want a deficiency (judgement) so they can proceed with collection efforts as soon as possible. But this is also a bank that's in the business of buying bad mortgages. The filing fee of a motion for relief from stay is only $180 if I'm not mistaken and they probably have lawyers on retainer who do nothing but file these motions all day. It's not costing them that much.

It's also possible that they think the property will be worth considerably less in a few months so they want to get rid of it as soon as possible.

just a reminder that debts incurred post bankruptcy are not dischargeable

i.e a deficiency judgement from midfirst

 

[architect]

just a reminder that debts incurred post bankruptcy are not dischargeable

i.e a deficiency judgement from midfirst

I like the way you think but a debt arising out of a deficiency judgement is not the same as Phil taking out new loans. It's a derivative of the original mortgage debt.

 

[Beavis]

No way are they getting anywhere near $60,000 for Phil's shitheap CT condo right now. In this climate they're going to have to find a cash buyer and give a huge discount. I could see them selling it for 30-40 grand cash.

 

[DiabeticSP]

Also that 60k is assuming a condo with actual upkeep and shit.

Phil's is abandoned and likely has several issues (didnt it have mold?)


Edit: wasnt there supposed to be a determination by Nancy today? Or does the asset case update change that.

 

[gh0stzero]

The change in type of case from non-asset to asset.

This means Nancy is going in long and hard without lube?

 

[Sparkletor 2.0]

Usually if a bank is spending time and money to start the paperwork rolling its because they've decided how much they're likely to get is worth the cost/effort.

If the bank just wanted the house back they could wait out the bankruptcy because they'd get it back anyways since its value isnt over the mortgage.

So they're probably looking to get a lien/etc asap, because thats where the value is in bothering with the process.

Mid first never game him a loan or mortgage. They bought his debt from JP Morgan or some other bank in August of 2019 after Phil had already stopped paying for months. Their plan is to squeeze Phil for all they can.

 

[Iron Hamster]

No way are they getting anywhere near $60,000 for Phil's shitheap CT condo right now. In this climate they're going to have to find a cash buyer and give a huge discount. I could see them selling it for 30-40 grand cash.

Gout Palace East is only 600 sq ft. It's like an overpriced studio apartment. Pre foreclosure price of $66k

 

[King Daddy Telomerase]

I didn't realize the CTkhando was so small. I know people in single subsidized housing with bigger living spaces. I can see that he needed something more for him and Leanna, although we know the Renton move was foolish. $135k for that condo in not a great area is absolutely insane, I don't care if there was a bubble.

 

[harbinger]

Phil's is abandoned and likely has several issues (didnt it have mold?)

Didn’t the mold move out in 2014?

 

[Dumpster dived waifu]

Guys, nothing to see here about that termination of stay. Mama Burnell told Phil to just let the bank take it and fuck off. It's not like they'd ever pursue him for however much the condo was underwater on. Mama Burnell got that business degree too.

 

[Salubrious]

I didn't realize the CTkhando was so small. I know people in single subsidized housing with bigger living spaces. I can see that he needed something more for him and Leanna, although we know the Renton move was foolish. $135k for that condo in not a great area is absolutely insane, I don't care if there was a bubble.

One of the most important things people will do in their lives is buy a house and DSP fucked it up TWICE. Mostly because he put no thought either time into whether it was good or not. He bought the CT condo to impress someone with a boyfriend (allegedly) and bought the WA condo because it was the first decent house he saw and didn't bother to keep looking.

 

[James Smith]

If Phil didn't file for bankruptcy and Midfirst got a deficiency judgement after the auction of the property, they could have levied his bank accounts or put a lien on his WAkhando (depending on state laws). Bankruptcy protects him from all of that.

Lifting the stay removes that protection. People are debating whether or not lifting the stay allows Midfirst to continue seeking a deficiency (I don't know why people are acting like they aren't yet doing this, it's in their lawsuit already.) People are debating whether or not lifting the stay allows Midfirst to attach their judgement, when they get it, to real property he owns.

As far as bankruptcy law goes, of course Midfirst can.

If the state laws allow the collection activity, then the written order allows it. Unless the judge comes in with a modified order prohibiting certain kinds of collection efforts the debate so far is silly. The real question is does state law allow it?

What needs researched, and what I'm unfamiliar with, is if states (particularly CT and WA) have a prohibition- for creditors authorized to resume collection- against attaching liens to real property during a debtor's bankruptcy. That seems like a really specific and odd law.

 

[Phalanx]

@SoapQueen1 been looking specifically in the WA section for this and found nothing so far it seems they are quite uniform through out and if differs only with numbers e.g. The amount of asset on property the owner is allowed in WA is 125.000. (the whole bankruptcy laws overall is somewhat connected to the constitution)

I did do some reading and testimonials about automatic stays being lifted and basically it means the protection element of the bankruptcy relating to Midfirst's loans etc is not lifted so Phil owes them still.

The term asset case means none of his assets are safe and because he owes much now in debt that is non-unwritable, its going to be very hard for Phil as he is going to challenge WAhkhando going but because the Midfirst stay being lifted is they can use WAhhando as a lien now.

The case itself is an utter mess because Phil outright lied in filing and did not disclose initially over half of his earning over 60-70k (the paypals and donations) fuck even his Patreon he did not and still has not listed. So to an outsider the case looks like it will go south really fucking fast. Nancy cannot in professional sense accuse Phil of fraud as she is the trustee and she is a pseudo judge in this, so it is incredibly unprofessional, she has to prove it. She already has, Phil should be shaking in fear if he had any modicum of awareness. The 341 went really bad and you are in the cross hares.

After the automatic stay being lifted, I thought it may not of been because standard bankruptcy law but the Judge clearly does not like this case. He would of talked to Nancy privately too. As its cross state and Judges / trustees do it quite a lot from what I asked a colleague who practises law. (they are British, so sadly the state laws he would not know sadly.)

Remember the automatic stay is lifted overall if they suspect fraud as the filing is dismissed entirely and he loses that 125.000 life line as that is part of the bankruptcy filing process not a fraud process. Also Nancy turns prosecutor in line with the federal supporting her because essentially its (hey you did not disclose this, you were lying now fuck you.)

@SoapQueen1 is that video of him on paypiggo (I don't know the architecture of the site.) saying he intends to file for bankruptcy 2 years ago, archived? That would probably be used against him because its a public admittance of him declaring meditation of bankruptcy a few years prior.

*grabs popcorn, this saga has been incredible!!!!!

 

[gh0stzero]

@SoapQueen1 is that video of him on paypiggo (I don't know the architecture of the site.) saying he intends to file for bankruptcy 2 years ago, archived? That would probably be used against him because its a public admittance of him declaring meditation of bankruptcy a few years prior.

*grabs popcorn, this saga has been incredible!!!!!

Just search for words he might have said.

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This is a good one:

"I cant file bankruptcy cuz they'll tell me to sell the house" lol

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Its been on his mind for a while

 

[tzgnilki]

can we assume DSP didn't respond to midfirst because of:

lawyer said it won't matter, it will just cost thousands and they will win anyway

lawyer said his house won't be touched and convinced him it was only to foreclose on CT condo

DSP hasn't checked his mail

DSP's birthday was more important

 

[Mike Hunt]

One of the most important things people will do in their lives is buy a house and DSP fucked it up TWICE. Mostly because he put no thought either time into whether it was good or not. He bought the CT condo to impress someone with a boyfriend (allegedly) and bought the WA condo because it was the first decent house he saw and didn't bother to keep looking.

I'm not gonna knock Phil too much for the Renton abode since, as discussed in these forums before, it did increase in value since the time Phil bought it. Everything else he did with his money is just one facepalm after another, though. Just the thousands he spent on digital sweaty muscled men could've gone a long way into climbing him out of debt. People earning less monthly have done more in securing cushy lives, assets, and futures than Mr. Valedictorian with a Business Degree here.

 

[King Daddy Telomerase]

lawyer said it won't matter, it will just cost thousands and they will win anyway

Probably this.

Also, as someone else said previously here, if Phil's Chapter 7 goes through this debt would be discharged anyway. This is what he's banking on as it's the only way he realistically saves the WAkhando.

 

[Chilson]

I'm not gonna knock Phil too much for the Renton abode since, as discussed in these forums before, it did increase in value since the time Phil bought it. Everything else he did with his money is just one facepalm after another, though. Just the thousands he spent on digital sweaty muscled men could've gone a long way into climbing him out of debt. People earning less monthly have done more in securing cushy lives, assets, and futures than Mr. Valedictorian with a Business Degree here.

He bought it to run away from Connecticut like a pussy. Not because he cared about the value. Fuck, if he cared about the value he would have sold it a year or so ago, paid off most of his debts and moved to a fly over state abode with good internet.

Not to mention that corona has effectively doomed the housing market, especially in Seattle (I predict it would have happened within the year anyways as the bubble burst, but whatever).

 

[gin_nose]

I recommend anyone who hasnt seen it recently to re-watch Phils bankruptcy announcement video (https://youtu.be/Uoo3WLW2OKI) because I find it quite interesting in regards to what we have been discussing such as:

1) Phil seems to think its 50/50 he gets chapter 7 or 13. he makes it sound like roachelle told him its likely to get converrted

2) he mentions he might lose his stupid statues, so evidence of fraud since he didnt list them?

3) he seems to know he might lose a bunch of his stuff, and he says he doesnt care

4) its clear he doesnt want to lose that "business equipment" as he says its at zero risk, he is going to sperg if they take it, it will be fun, he seems so sure he wont lose it and he is too dumb to realize he can make the money to replace it with brand new shit in a single IRL crying scream.

5) he says he knew he was going to go bankrupt like a year prior (I guess it doesnt count until you talk to a lawyer though?)

6) some other interesting shit i already forgot.....

its a good watch after all that has unfolded.

 

[myone]

1) Phil seems to think its 50/50 he gets chapter 7 or 13. he makes it sound like roachelle told him its likely to get converrted

This is from before he actually filed for bankruptcy. Presumably he and Rochelle were debating whether he's eligible for Chapter 7. He's not talking about it being converted to a Chapter 13.

4) its clear he doesnt want to lose that "business equipment" as he says its at zero risk, he is going to sperg if they take it, it will be fun, he seems so sure he wont lose it and he is too dumb to realize he can make the money to replace it with brand new shit in a single IRL crying scream.

I think he'd probably have had a decent shot at keeping all his business assets if he actually made it very clear what his actual job involves, itemized them, and explained why he needs them (in detail). If I were in his position this part of the bankruptcy would have gotten the most of my time and effort, so that the court understands what stuff I need to keep making a living. Of course Dave is a very exceptional individual and didn't think that all these entertainment products (aka assets) could be suspicious to a bankruptcy court.