[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

[Royalty Free Fish Food]

I have no idea why people want to see Phil go to jail. That would just dry up the udders.

Because he'd get to live with those big black dudes he loves so much.

 

[actually]

So I sat down at tried to work out the math for what his income would have been in 2018 from what we know about his taxes for 2018 based on the federal tax brackets. He shows a $15,000 federal tax balance and $500/mo. So his tax bill for 2018 had to be around $20,000. This is only considering federal taxes, not state taxes, which he paid separately.

This implies he would have had an income of $123,000 - after he wrote off his business expenses. He gross receipts would be even higher than that. If he wrote off $5,000 a month in business expenses, his gross receipts on the business would have been $183,000. So it looks like Phil probably isn't writing off WWE Champions, or at least he wasn't in 2018.

Assuming a more conservative $18,000 tax bill implies an income of $115,000, again after he wrote off all his business expenses.

This idiot should have so much disposable income I'd be surprised if he legitimately qualifies for Chapter 13, let alone Chapter 7.

What I'm wondering is why he claimed he only grossed $78,204 in 2018 on his bankruptcy filing. Obviously that is complete bullshit, but I can't even figure out how he could justify it.

He listed his net income for 2018 and 2019 instead of his gross income. That's why his 2019 gross income is like $10,000 higher than the sum of the monthly income he reported (accurately) for July-December 2019. If you just double the net income listed, you're about where his actual income was, give or take. So your estimation of his income is reasonably accurate for 2018. I only counted around $118,000 of income from Twitch, Youtube, and Patreon for 2018 (see first post here: https://kiwifarms.net/threads/dsps-loan-savings-company.36834/), but I also generally underestimate the numbers (on purpose). Youtube is also basically a black box--we can only put a range on his CPM.

 

[Nigel of Ukip]

As has been stated multiple times, he's not going to prison. No conceivable set of circumstances in this entire process, for Phil, could result in him going to the slammer. The absolute worst that might happen is dismissal with prejudice which simply prevents him from re-filing for x amount of days. People in prison can't pay debts.

This can't be said enough.
They want money from him, so why would they put him in a situation where he cannot make money.
The best we can hope for is that they tell Phil to knock off this retarded lie and fine him for some thousand dollars extra.

 

[Gotta Groom Em All]

As has been stated multiple times, he's not going to prison. No conceivable set of circumstances in this entire process, for Phil, could result in him going to the slammer. The absolute worst that might happen is dismissal with prejudice which simply prevents him from re-filing for x amount of days. People in prison can't pay debts. They see him earning $10k/month. They're going to want him to keep earning that and paying what he owes.

In a way, he's already a prisoner. Doomed to sit on that musty couch, playing games he hates for the rest of his days, squealing for quarters from children and wheelchairs.

It's unlikely, but technically it's still possible.

 

[AnOminous]

Why not? They got their money's worth out of Phil. Looking at his inability to pay off loans he surely already paid more than the original loan including all the interest.

He owes $50,000+ to some of them. He could have racked up a lot of that in less time than it would have taken to pay it off. These aren't $2,000 tard cards with 20% APR, or at least weren't at the time.

@AnOminous If the court determines DSP can afford to pay off his debt under a Chapter 13 plan within less than 5 years would a Chapter 13 petition get dismissed?

You mean Chapter 7? More likely they'd just convert it into a Chapter 11, or give him the option to do that. They'd dismiss the Chapter 7 if he doesn't qualify for it, though, and then he could just cope with them liquidating everything or voluntarily file a Chapter 11 or 13. One question is whether he qualifies for a Chapter 13. Does he have a stable enough income? Almost anyone can qualify for a Chapter 11 by comparison.

OTOH Greg Doucette somehow has a Chapter 13 and doesn't appear to have any activity but constantly tweeting and grifting on crowdfunding scams.

 

[Pepper Jack]

I have no idea why people want to see Phil go to jail. That would just dry up the udders.

He would beg his paypigs to cheer/sub/tip while he is in jail.

So while I will be in jail for 3 months, I would appreciate tips. My paypal will be linked to my commissary account so I can buy. You know. Food and snacks and so many other things so please consider tipping.

 

[Schrödinger's Kat]

I only counted around $118,000 of income from Twitch, Youtube, and Patreon for 2018

So it seems we are either underestimating his income, possibly from YouTube or behind-the-scenes contributions, or he writes off almost nothing from the business. I would guess he would be writing off at least $1000 a month between games, internet, web server, "home office", and the like, so he's probably grossing between $130,000-$140,000. That doesn't include Kat's income.

I did another quick calculation, and this one is back-of-the-envelope so I could be way off or made a mistake here. But assuming he is continuing to pull the same income now and in the future, based on the conservative $115,000 yearly income, and subtracting $2000/year in state/business taxes and $18,000 in federal income tax, that leaves him $95,000/year after taxes and business expenses.

Using that accounting, he has about $7914/mo net. Now we add Kat's net $1349 for a total household income of $9260 per month net after taxes.

From what is provided in his expenses worksheet, his living expenses are $5113/mo. Subtracted from his $9260 income it leaves him $4150 in disposable income per month.

In Chapter 13, he may be required to pay roughly $4150/mo towards his payment plan for 5 years.

Finally, multiply $4150/mo * 60 months in his payment plan, you end up with $249,000, which covers all his unsecured debt ($133,550) plus his tax debt ($15,000), and brings the CT khando above water ($102,450 - $60,611 = $41,389 in the black). I don't see how he even qualifies for bankruptcy period.

He can pay off all his debt on a re-payment plan (assuming 0% interest), and more, with his current disposable income. He might still get Chapter 13, but none of his debt will be discharged, unless he figures out how to prove he spends $5000/mo on his business. He's literally just trying to scam the system so he can keep spending thousands per month on his mobile games.

 

[AnOminous]

He can pay off all his debt on a re-payment plan (assuming 0% interest), and more, with his current disposable income. He might still get Chapter 13, but none of his debt will be discharged, unless he figures out how to prove he spends $5000/mo on his business. He's literally just trying to scam the system so he can keep spending thousands per month on his mobile games.

He's like a crackhead trying to write off crack as a business expense and instead of hocking all his shit he buys on credit, getting to keep it and keep buying crack, too.

 

[James Smith]

@AnOminous If the court determines DSP can afford to pay off his debt under a Chapter 13 plan within less than 5 years would a Chapter 13 petition get dismissed?

You mean Chapter 7?

Nah I mean if he's well-off enough to pay off his debt in less than 5 years if he makes payments as agreed on credit cards instead of wrasslin' games, wouldn't they just deny a reorganization?

EDIT: @Schrödinger's Kat is getting at what I'm talking about. He doesn't seem to qualify at all but I think the law still lets you declare a pointless bankruptcy if you want.

 

[Thomas Talus]

I hope no one actually shows up at the 341, the most interesting part of those is finding a parking place.

 

[Beetus Knuckles]

Owning two properties is what’s so exceptional about DSP’s situation. One benefit of Chapter 13 is rolling the arrears on secured debts into the payment plan, so even if you come out the other side without discharging any debt, you’re in good standing with your creditors . This doesn’t help Phil since he wants out of the Conndo. If he can‘t khan his way into a Ch. 7, he’s just as screwed as back at square one. He should have hired an attorney to negotiate, brought the taxes and HOA current, and tried like hell to get a deed in lieu approved before he even tried filing. Maybe that’s what all the hardship letter stuff on his desktop was. I guess the true moral of the story is DSP has enough money coming in to meet his obligations if he could stay away from WWE gacha and three real adult meals out in restaurants on his day off.

 

[tzgnilki]

Owning two properties is what’s so exceptional about DSP’s situation. One benefit of Chapter 13 is rolling the arrears on secured debts into the payment plan, so even if you come out the other side without discharging any debt, you’re in good standing with your creditors . This doesn’t help Phil since he wants out of the Conndo. If he can‘t khan his way into a Ch. 7, he’s just as screwed as back at square one. He should have hired an attorney to negotiate, brought the taxes and HOA current, and tried like hell to get a deed in lieu approved before he even tried filing. Maybe that’s what all the hardship letter stuff on his desktop was. I guess the true moral of the story is DSP has enough money coming in to meet his obligations if he could stay away from WWE gacha and three real adult meals out in restaurants on his day off.

one thing about unsecured debt is it can be negotiated down to pennies on the dollar, dsp doesn't even want to do this

 

[L.I.M.B. Commander]

one thing about unsecured debt is it can be negotiated down to pennies on the dollar dsp doesn't even want to do this

IMHO something tells me he wants to basically wants to give these creditors the middle finger with this bankruptcy and say "I'm not paying shit eat a fuckin dick" I can't wait for his rude awakening...

 

[Beetus Knuckles]

one thing about unsecured debt is it can be negotiated down to pennies on the dollar, dsp doesn't even want to do this

Absolutely. Credit card companies will close the account and drop the interest to 2%, so they’ll get paid something. Many petitioners have 10’s of thousands in medical debt after an unfortunate event. Phil has credit card debt for gacha spending, crappy staycations, dusty statues, discarded coffee machines, and pointless streaming services. Almost makes me MOTI...

 

[Forbidden Math]

This can't be said enough.
They want money from him, so why would they put him in a situation where he cannot make money.
The best we can hope for is that they tell Phil to knock off this exceptional lie and fine him for some thousand dollars extra.

I mean if they want money from him they don't have to put him in jail, they can also just fine him a massive amount of money. If you want to get paid by DSP I'd say that's the fastest way.

Edit: By the way, will we get to see the outcome of the case? Will that be made public record?

 

[AnOminous]

Owning two properties is what’s so exceptional about DSP’s situation. One benefit of Chapter 13 is rolling the arrears on secured debts into the payment plan, so even if you come out the other side without discharging any debt, you’re in good standing with your creditors .

This is why he might, emphasis "might," qualify for bankruptcy even if he can actually pay the nominal amounts in a plan. Bankruptcy isn't just being completely unable to pay debts, it's also not being able to pay them as contracted, either because they're due now or because they're behind. It restructures them as well if the problem is cash flow, and can eliminate things like penalties and allow repaying them over a longer period of time.

I mean if they want money from him they don't have to put him in jail, they can also just fine him a massive amount of money.

If they're really trying to squeeze him they'll figure out the condo is what's most important to him and anything they can do to threaten that, by canceling the bankruptcy, will bring him to his knees begging. That's how they get his balls in a vise.

 

[tzgnilki]

Edit: By the way, will we get to see the outcome of the case? Will that be made public record?

yes, the outcome is public, it will show up here

I looked into other bankruptcy cases when the lawyers of midfirst bank and his WAkahndo mortgage company showed up on his docket

it will say whether it was discharged or dismissed & reason for dismissal if it's dismissed, so if it does get dismissed he can't make up another "someone screwed me over" story

 

[Gotta Groom Em All]

yes, the outcome is public, it will show up here

I looked into other bankruptcy cases when the lawyers of midfirst bank and his WAkahndo mortgage company showed up on his docket

it will say whether it was discharged or dismissed & reason for dismissal if it's dismissed, so if it does get dismissed he can't make up another "someone screwed me over" story

You're thick if you think that will stop him from absolving himself of responsibility.

My lawyer screwed me over dood there was nothing I could do!

Uh, Phil? It says right here it was discharged because you attempted to hide your assets.

Uh, no! You're a complete idiot who doesn't understand anything about how bankruptcy works, and now you're banned. Ack ack ack. Just because that's what it says on the report doesn't mean that's what actually happened. They just put that so the court knows where to file the paperwork. The judge is a dirty detractor and you people are complete idiots.

 

[tzgnilki]

You're thick if you think that will stop him from absolving himself of responsibility.

My lawyer screwed me over dood there was nothing I could do!

Uh, Phil? It says right here it was discharged because you attempted to hide your assets.

Uh, no! You're a complete idiot who doesn't understand anything about how bankruptcy works, and now you're banned. Ack ack ack. Just because that's what it says on the report doesn't mean that's what actually happened. They just put that so the court knows where to file the paperwork. The judge is a dirty detractor and you people are complete idiots.

just saying there won't be any grey area about what the truth is, ofcourse he'll blame someone else

 

[Iron Hamster]

You're thick if you think that will stop him from absolving himself of responsibility.

My lawyer screwed me over dood there was nothing I could do!

Uh, Phil? It says right here it was discharged because you attempted to hide your assets.

Uh, no! You're a complete idiot who doesn't understand anything about how bankruptcy works, and now you're banned. Ack ack ack. Just because that's what it says on the report doesn't mean that's what actually happened. They just put that so the court knows where to file the paperwork. The judge is a dirty detractor and you people are complete idiots.

We should start calling it the DarkSydePhilabuster