[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

[actually]

Wait so they gave him a loan only putting 12k down on the condo? LOL what. How do you allow that post 2008?

Good credit score and high income for a few years. Remember that this was in 2014. He had little debt and was still riding high on YouTube money.

 

[AnOminous]

Here are some deadlines. 10 days from 3/31/2020 which I believe is 4/14.
View attachment 1224182

It's not a business days only deadline.

(1) Period Stated in Days or a Longer Unit. When the period is stated in days or a longer unit of time:

(A) exclude the day of the event that triggers the period;

(B) count every day, including intermediate Saturdays, Sundays, and legal holidays; and

(C) include the last day of the period, but if the last day is a Saturday, Sunday, or legal holiday, the period continues to run until the end of the next day that is not a Saturday, Sunday, or legal holiday.

FRBP 9006.

Also there's no explicit deadline I can actually find in the statutes for the trustee to do this. The most I can find is general statements that it's usually about 10 days. My guess is there's still ongoing work.

 

[Jaximus]

From what I’m reading about charge offs, it just means citi bank removed it from their own records and might have actually sold it off. It can also still be discharged under a chapter 7 bankruptcy. So I think it might be a bit too early to celebrate.

From the perspective of a lender, a charge off discharges its collection responsibilities and allows it to remove the debt from its records. From the perspective of a debtor, a charge off may result in more aggressive rather than less aggressive collection efforts. The collection agency will pursue the debt on the lender’s behalf if it was retained by the lender. If the lender sold the debt to the collection agency, the agency will pursue payment on the debt on its own behalf.

Edit: If the charge off involves an unsecured debt, which may be a credit card debt or a debt owed to a health care provider, you can get the debt wiped out in either Chapter 7 or Chapter 13.

 

[UncleTusky]

From what I’m reading about charge offs, it just means citi bank removed it from their own records and might have actually sold it off. It can also still be discharged under a chapter 7 bankruptcy. So I think it might be a bit too early to celebrate.

I think you are missing the important point here, Citibank is trying to argue the debt is non-dischargeable in Chapter 7 bankruptcy and that they should have the right to collect the full $38k even if it does go through. The chargeoff is just the icing on top of the sundae.

 

[DiabeticSP]

I think you are missing the important point here, Citibank is trying to argue the debt is non-dischargeable in Chapter 7 bankruptcy and that they should have the right to collect the full $38k even if it does go through. The chargeoff is just the icing on top of the sundae.

If Phil paid taxes/etc on credit like he claims he did it sure as fuck isnt getting wiped. Banks dont fuck around with money either when they make moves (like midfirst with the condo) someone ran numbers and decided it was likely they'd win.

Basically if banks are spending money to make money they arent gonna halfass it for no reason, they think there's a profit.

 

[Jaximus]

I think you are missing the important point here, Citibank is trying to argue the debt is non-dischargeable in Chapter 7 bankruptcy and that they should have the right to collect the full $38k even if it does go through. The chargeoff is just the icing on top of the sundae.

Ye, my bad there, didn’t read the full twitter post that had in it why citi posted those files. I thought they just filed those documents to say they had it charged off and not to contact them about it, but w/e collection agency was in charge of it now. Reading the full post tho, seems good ‘ol Nancy found some undisclosed assets. Guess we can expect more proof of claims to pour in soon then.

 

[But I Digress]

I was going to sperg about what I thought the 3/31 10 days shit meant, but then Mr. Huth blessed us with an update: Citibank appears to be fighting the bankruptcy on top of unpaid taxes to the State Department of Revenue in the combined amount of $38,308.22.

mrhuth on Twitter

“CitiBank is claiming $37,995.54 in debt”

twitter.com

Docs: https://mega.nz/file/MAdxWQJJ#VAOoViuY2hqcgKbjCYVLj32SY6augvFHXTHwttuLmL4

EDIT Goddamnit why did you have to ninja me @Freshtodeath

EDIT X2




It means they're declaring it severely (> 6 months) delinquent which looks worse than regular delinquency on his credit report. It also lets them write it off as uncollectable for tax purposes while still letting them pursue him for the full amount. Apart from fucking his credit this means they probably intend to use the tax benefits of a charge off to pay for the costs of pursuing him.

Happy Anniversary Paul

 

[DiabeticSP]

Ye, my bad there, didn’t read the full twitter post that had in it why citi posted those files. I thought they just filed those documents to say they had it charged off and not to contact them about it, but w/e collection agency was in charge of it now. Reading the full post tho, seems good ‘ol Nancy found some undisclosed assets. Guess we can expect more proof of claims to pour in soon then.

I don't think this has anything to do with assets or what Nancy's doing.

This is letting Nancy know IF he somehow got bankruptcy granted that this 38k in debt shouldn't get wiped.

Whether or not Phil has assets this debt won't go away because its nondischargeable (according to Citi).

Basically if Citi is correct (and they probably are) after bankruptcy Phil would still be left with 38k that Citi is coming to collect (along with whatever other debts they cant wipe like the tax payments).

Dood could get a chapter 7 and still owe 60k+ in debt to Citi and the IRS plus the HOA fees being foreclosed on and whatever his stupid ass put on credit during the process.

 

[architect]

Where are you guys getting this "Citibank is arguing that the debts can't be discharged" or "He used his credit cards to pay taxes" nonsense from? All I'm seeing are proof of claim forms, which creditors are legally required to file if they want to be paid out of the bankruptcy estate. If a Chapter 7 bankruptcy is changed to an asset-case, such as Phil's, the bankruptcy court will send a notice to the creditors telling them how and when to file.

 

[Sir Wesley Tailpipe]

I was going to sperg about what I thought the 3/31 10 days shit meant, but then Mr. Huth blessed us with an update: Citibank appears to be fighting the bankruptcy on top of unpaid taxes to the State Department of Revenue in the combined amount of $38,308.22.

mrhuth on Twitter

“CitiBank is claiming $37,995.54 in debt”

twitter.com

Docs: https://mega.nz/file/MAdxWQJJ#VAOoViuY2hqcgKbjCYVLj32SY6augvFHXTHwttuLmL4

EDIT Goddamnit why did you have to ninja me @Freshtodeath

EDIT X2




It means they're declaring it severely (> 6 months) delinquent which looks worse than regular delinquency on his credit report. It also lets them write it off as uncollectable for tax purposes while still letting them pursue him for the full amount. Apart from fucking his credit this means they probably intend to use the tax benefits of a charge off to pay for the costs of pursuing him.

Phil is totally fucked, as some of us were saying. I’m sure the trustee got a whiff of something and notified the state and federal tax authorities, and thus begins the worst experience Phil may ever live through.

 

[actually]

So there's some additional documents that MrHuth posted from the WA State Department of Revenue. Seems Phil failed to pay some type of "excise tax" from July 1 to Sept 30 of 2019 in the amount of $312.68. The documents from Dept. of Revenue were apparently filed February 21st, 2020. Note that there is an amended claim, so there's 4 documents total from WA Dept. of Revenue and 3 from Citibank attached. @Comma, could you attach them to the OP as you see fit?

I'm also attaching the 3 Citibank documents. Could @SoapQueen1, @Beetus Knuckles, @AnOminous, @architect, and any of our other experts comment on the WA State filing? Side note: the fact that he owed ~$311 for 2 months of state tax suggests that his gross income for 2019 (assuming those months are reasonably similar to the other months) was ~$124,000, which is perfectly in line with what we've estimated before.

Math:

$310.23 / 2 months = $155.12 state B&O tax per month * 12 months = $1861.38 for 2019 / 0.015 (1.5% B&O tax) = $124,092 of gross income.

 

[DiabeticSP]

Q from browsing the docs: is there a reason these (such as the 15k) are listed as 'loans' when the description box of the requested line has 'credit cards' as a separate example?

It does look like this is just acknowledging the accounts and that Citibank has non-secured non-priority debt.

 

[ReentryPhantom]

How the fuck could he not afford to pay $300?

 

[Prince Lotor]

So there's some additional documents that MrHuth posted from the WA State Department of Revenue. Seems Phil failed to pay some type of "excise tax" from July 1 to Sept 30 of 2019 in the amount of $312.68. The documents from Dept. of Revenue were apparently filed February 21st, 2020. Note that there is an amended claim, so there's 4 documents total from WA Dept. of Revenue and 3 from Citibank attached. @Comma, could you attach them to the OP as you see fit?

I'm also attaching the 3 Citibank documents. Could @SoapQueen1, @Beetus Knuckles, @AnOminous, @architect, and any of our other experts comment on the WA State filing? Side note: the fact that he owed ~$311 for 2 months of state tax suggests that his gross income for 2019 (assuming those months are reasonably similar to the other months) was ~$124,000, which is perfectly in line with what we've estimated before.

Math:

$310.23 / 2 months = $155.12 state B&O tax per month * 12 months = $1861.38 for 2019 / 0.015 (1.5% B&O tax) = $124,092 of gross income.

So in the month Phil claimed he had $9K of O & NE business costs he didn't pay his Washington state B&O taxes, and he still hasn't paid them? That's some great bookkeeping there Phil. It's a wonder how you went bankrupt

 

[DiabeticSP]

How the fuck could he not afford to pay $300?

Same way he almost got sued over not paying the HOA fees, probably.

He was told 'stop using credit' and heard "dont pay anything at all".

 

[actually]

Same way he almost got sued over not paying the HOA fees, probably.

He was told 'stop using credit' and heard "dont pay anything at all".

That was from July and September. He didn't see Rochelle until October. Also, it's $300 in taxes. You don't get to just not pay taxes.

 

[DiabeticSP]

That was from July and September. He didn't see Rochelle until October. Also, it's $300 in taxes. You don't get to just not pay taxes.

I agree but I imagine 'why didnt phil pay his taxes' is answered by 'phil decided he shouldn't pay things because fuck em he's gonna declare bankruptcy/let them take the house/etc'.

Basically stupidity.

 

[AnOminous]

It looks like the sharks are finally responding to the chum in the water.

As to that state tax, I have no clue. But if some state agency somehow is mad at you enough that they're somehow intervening in your bankruptcy to file something over $300 or some shit, just PAY them you bitch. Wtf.

 

[Beetus Knuckles]

I’m not sure what the excise tax is other than another term for state B&O tax. The type of business Dave engages in doesn’t typically generate excise tax as I’m familiar with the term. It’s a priority claim, so it’ll be first in line after Nancy collects her fees from any liquidated assets. Also noticed that Dave was using his Citibank card as late as mid-October. The creditors have been notified this is an asset case and they smell pigroach blood in the water. It’ll be very interesting to see if creditors are going to start file objections to discharge. Knowing Dave, he charged on every card right up to the limit where it is presumed fraudulent. Thanks for the money dummies. ACK ACK ACK. Indeed.

 

[eggsandwich]

How the fuck could he not afford to pay $300?

He can, just didn't want to. He probably decided that he'd file for bankruptcy soon and were deciding which debt he could get away with.

What a great way to start a marriage! People usually aspired to be a better man so that they could become better parents. Phil was planning how to get away with running up 14+ credit card debts so that he could play some mobile games. Legacy!!