[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

[harbinger]

The hearing will be fairly quick at most it'll probably be 30 minutes. Even that could be unlikely, the trustee is not going to waste a ton of time trying to unravel everything, they have many more people to deal with that day.



His most recent tax return along with all 1099s has to be provided to the trustee 7 days before the hearing, along with bank statements for I believe 60 days, each district can have slightly different rules. I suspect he will bring his 2018 returns but given the timing of his case, he will either need to provide 2019 before the hearing or after the hearing but he will have to provide it before this gets resolved.



I think people are getting a little too worked up over the paypal account issue. The bankruptcy filing is listing assets, its not a full listing of every account you have. Its pretty well established he empties his paypal account every night so its reasonably fair to not list it in the filing. Now if he doesn't include the statements for the paypal account before this hearing that would be a problem. The paypal account will be discovered with the documents he has to provide before the hearing.

I won't speak for everyone, but I was really confused it wasn't listed because literally every single tip, which typically accounts for half or more of his monthly Twitch income, goes through that account. So for him to list an empty savings account and a single checking account with $400ish...while also listing an income of more than $9000 a month for several months...that just doesn't make sense.

I do hope the trustee does even basic fact-finding on his accounts though. His shit doesn't add up.

Concerning the PayPal account, will he have to provide bank statements? I’ve never used PayPal to receive payments, but I would assume PayPal would be listed on every deposit he’s made from it. I know with my direct deposits, the company name has been listed. I would assume this could, would, and should send up an immediate red flag that he’s hiding an account, assuming anyone else in that court has an understanding on how PayPal works.
Does PayPal offer some form of debit card linked to one’s PayPal account? Could he be lying about transferring money from PayPal to BoA? Maybe he is just flat out hiding a large portion of his cash.

 

[King Daddy Telomerase]

I've never seen Phil bothered by something as much as the bankruptcy. Well, except the day he thought all his Youtube shekels were gone for good. He's trying so hard to pretend like it's not bothering him, but I think he's finally realizing how fucked he is.

 

[Randy Lahey]

He just needs to throw all his credit cards in a lake, then the creditors can’t trace that shit

 

[Gotta Groom Em All]

He just needs to throw all his credit cards in a lake, then the creditors can’t trace that shit

When should I schedule that fuckin' greasy caveman to come pave the gated community?

 

[actually]

He is going nuts about the bankruptcy on the stream tonight.

But most importantly, he finally just flat-out said "I said up front, going into this, I need to keep my house. So, whatever is going to do that, that's what we need to do. And, you know, worst case scenario, if things through this filing... get found out that, you know <stuttering jibberish> no Chapter 7, then I would just do the other one."

So basically, this was doing whatever needed to be done to qualify for Chapter 7 to keep the house, and Phil's plan if called on this being bullshit is to just turn around and file for Chapter 13 like it's no big deal.

Man, sure sounds like he went to Flat-Fee McGee, Esq. and said "I have to keep this house. Here's my income. Here's my household expenses. Make it so the bad men can't take my house."

 

[Red Mask]

I've never seen Phil bothered by something as much as the bankruptcy. Well, except the day he thought all his Youtube shekels were gone for good. He's trying so hard to pretend like it's not bothering him, but I think he's finally realizing how fucked he is.

Well, he likely figured that he's always come out fine before, so why should this be any different? As if nothing happens for the first time.

 

[wabbits]

Turns out Phil's trustee was also the trustee appointed in 2018 to run Michael Avenatti's Global Baristas US LLC (GBUS), which operated the Tully's Coffee stores he launched in California and Washington. I'm sure Phil's business genius will totally overwhelm her analytical abilities.

The screen shots:
What is GBUS - see PDF page 292.
NLJ appointed GBUS trustee - see PDF page 417.

Or click this link and a 573-page, 60MB PDF will begin downloading: http://www.adamlawyer.com/adam/avenatti_michael_206929_19-TE-30259.pdf

 

[Schrödinger's Kat]

I’ve never used PayPal to receive payments, but I would assume PayPal would be listed on every deposit he’s made from it.

It does. But when he gets tips they don't get automatically/instantly deposited into his checking account. PayPal holds on to them just like a normal bank account, and the "tips" appear just as deposits into his PayPal bank account. And he can buy things, for instance Apple Store credit, directly from PayPal without ever transferring it to his actual BofA checking account. It will have all kinds of financial transactions that aren't even part of his regular checking account. To put it plainly, its important information.

 

[Prince Lotor]

Phil ended the stream by saying "In a bankruptcy you aren't required to list everything you own, because there are exemptions up to $13K. So yes, I have a TV in my living-room, but it's 5 or 6 years old, and everything else is just furniture and appliances, but idiots wouldn't know that because they are children. To a collector one of my statues might be worth $700. The government isn't going to sell my statues on Ebay for top dollar, it's for however much a buyer would pay for it right now, like how much would the statue sell for? Maybe $50, how much would a pawnshop buy it for? That's what the value is. You see what I mean? So no, you don't have to 'nickle and dime' out everything that you own. If anything they're going to take my statues and that's it. And yes, my business is included on the form, just not on the part this idiot is looking at. It's 50 fucking pages!'

That's not it at all Phil. You value your items by determining the 'replacement value' of said item. How much would it cost you to re-buy a 5 year old 55" TV of that model right now? That's the value. How much would you have to pay to re-buy your exact entire statue collection today? That's the value. How much would it cost you to re-buy your 500 Blu-rays and DVDs right now? That's the value. Not whatever the first crackhead you can find would be selling if for after jacking it out of a car.
ETA: It's exactly the same as the value of your car. How much would it cost you to re-buy a pre-owned 2017 Toyota Corolla today? It's not a different concept for your other property.

How to Fill Out Bankruptcy Schedule A/B: Property

On Schedule A/B of the bankruptcy forms, you provide information about all of the property you own, including your home, car, and personal belongings.

www.thebankruptcysite.org

Also basically confirmed it was his bankruptcy lawyer that came over that night. Said she had been in his house and seen all his stuff "Including my statues. She's a LAWYER guys! Uhuh huh"

 

[tzgnilki]

Also basically confirmed it was his bankruptcy lawyer that came over that night. Said she had been in his house and seen all his stuff "Including my statues. She's a LAWYER guys! Uhuh huh"

is this the "bzzzz, they're here" incident? that he tried saying was some security alarm people?

 

[millais]

Whoa, now that is no small revelation. Explains why he was acting so nervous and weird and sounded more than a little apprehensive or reluctant about ending the stream to meet the visitor. And explains why he had to conduct the visitor all around the condo in person and why Khat couldn't just handle it for him and let him keep streaming.

 

[King Daddy Telomerase]

Phil's explanation about why he didn't list the statues is retarded... it's because he thinks they're valuable collectibles worth hundreds, but the gov't would sell them for whatever. I really doubt Rochelle went to his house. He's just trying to nickel and dime everything, and hopefully it's going to fuck him over.

 

[NIGGER ASS PEE POOPY RAPE]

you idiots still somehow don't understand. he needs those statues, the houses, the car, the wife, the blu-rays and just about everything else he owns to maintain his reputation as a mature adult gamer/content creator who can afford the finer things in life while still being a hardcore gamer, smashing the stereotype that all adult gamers are just irresponsible manchild losers. therefore, losing ANY of his possessions that have appeared or been talked about on stream or any of his social media would ruin his business if they were to be liquidated. DSP will be the one having the last laugh at you detractors when the judge fully agrees with him and tells the scumbag creditors to go get fucked.

 

[Mr.PiggyOinkOinkOink]

I refuse to believe he actually thinks the only thing these people are going to be interested in are those old broken statues over TVs and couches, there’s just no way he’s that delusional

 

[Schmeckel]

Does PayPal offer some form of debit card linked to one’s PayPal account? Could he be lying about transferring money from PayPal to BoA? Maybe he is just flat out hiding a large portion of his cash.

YES. They do. I have one. I haven't used it in forever, but I have one. They keep sending me new ones, but I haven't used it for at least 3 years. It was convenient when I was doing side-business and taking PayPal for payment. Kept the gas tank full.

 

[architect]

He's so full of shit. In this kind of bankruptcy mill the lawyer only transforms the financial records provided by a client into the appropriate paperwork required for a bankruptcy filing. He won't come to your house and appraise your possessions, an actual appraiser does that, but the bankruptcy lawyer does usually provide a client with a list of recommended appraisers. Regardless, you aren't supposed to deduct exemptions from the value of your possessions so his claim that he didn't have to report the value of his electronics and other valuables because they didn't exceed the exemption threshold is false. It even says so in his own petition (on the right):

Do not deduct secured claims or exemptions

 

[LightTailFoal]

I am pretty open to many possible outcomes here.

His attorney may or may not know where all the boundaries are in that specific court.

His attorney may have deliberately rammed through the initial paper work so she could sign and not worry about the "certify that I have no knowledge after an inquiry that the information in the schedules filed with the petition is incorrect" regarding herself.

His attorney may know that she can easily get a mulligan for problems, and taking a crack at dismissing $175,000 of high interest debt is worth a shot, all while keeping herself completely safe.

His attorney may know she can get extra compensation for amending to Chapter 13, and perhaps can get it through even if his debt is not high enough, perhaps arguing that her client needs a trustee (which is true).

And courts tend to be more friendly simply given the fact that a person has compensated their lawyer brethren.

Or all the above could be totally wrong. The truth is not reliable when we receive it after it has been filtered through Phil's mind. There are many crazy things that could happen here.

 

[Prince Lotor]

you idiots still somehow don't understand. he needs those statues, the houses, the car, the wife, the blu-rays and just about everything else he owns to maintain his reputation as a mature adult gamer/content creator who can afford the finer things in life while still being a hardcore gamer, smashing the stereotype that all adult gamers are just irresponsible manchild losers. therefore, losing ANY of his possessions that have appeared or been talked about on stream or any of his social media would ruin his business if they were to be liquidated. DSP will be the one having the last laugh at you detractors when the judge fully agrees with him and tells the scumbag creditors to go get fucked.

I was actually making this argument in my head yesterday. Like I wouldn't say his business is strong, his business is low quality productions on old equipment with an almost decade out-of-date content model that's on a downward trend in most areas or holding steady but on shaky and inconsistent footing.

What I would say is that his Brand Identity is strong. He needs all his possesions so he can act like a smug-cunt loudmouth who talks down to everyone. Anything that would humble him or breakthrough his delusions would hurt his Brand Identity and therefore, possibly irrevocably, hurt the income of his business. So you see Your Honor, he had to tell flamboyantly flagrant lies on his bankruptcy filing to protect his business, and my client needs his delusions catered to that: 1 -all of his credit card debt disappears 2 -you're going to tell Midfirst bank to 'take the property and fuck off, because he's tired of it so leave him alone!' and 3 -he gets to keep all his property with no repercussions. Otherwise he might not be able to play the 'DarkSydePhil' character that is the essential core of his business. You can maybe take his gamer statues, but that's it.

 

[myone]

His attorney may know she can get extra compensation for amending to Chapter 13, and perhaps can get it through even if his debt is not high enough, perhaps arguing that her client needs a trustee (which is true).

This is the crux of the matter: He could totally pay of his debts by selling the Wakhando and living a more appropriate lifestyle, but he won't ever do it without someone watching his gouty little fingers and telling him "No Phil, you cant have the microtransactions now!".

 

[WeeblesWobble]

Phil ended the stream by saying "In a bankruptcy you aren't required to list everything you own, because there are exemptions up to $13K. So yes, I have a TV in my living-room, but it's 5 or 6 years old, and everything else is just furniture and appliances, but idiots wouldn't know that because they are children. To a collector one of my statues might be worth $700. The government isn't going to sell my statues on Ebay for top dollar, it's for however much a buyer would pay for it right now, like how much would the statue sell for? Maybe $50, how much would a pawnshop buy it for? That's what the value is. You see what I mean? So no, you don't have to 'nickle and dime' out everything that you own. If anything they're going to take my statues and that's it. And yes, my business is included on the form, just not on the part this idiot is looking at. It's 50 fucking pages!'

That's it. It's confirmed. The man is insane. Collectibles are valuable to people who collect those specific type of collectibles. Electronics are valuable to basically everyone. I can sell a 5 year old 55 inch tv in a minute if I needed to. The lemon pc? Easy sell. His spare ps4? Give me two minutes on facebook. Those types of things sell easily and some of them can catch some decent cash. Collectibles are always a hard sell. He also failed to mention all of the "art" that he has haphazardly plastered all over his hallway upstairs. DVD's and blurays can be sold as a lot easily.

One of the things that kind of pisses me off about this whole thing is that bankruptcy is supposed to help you. Everyone involved is basically just trying to help you get all of this debt paid off in a timely manner so that you can resume your life with a clean slate. Phil somehow made this a thing where he's fighting it, when the thing he really needs is someone watching his wallet. Honestly, he should have gotten an accountant years ago.