[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]

The docket and thread for that are here:

https://kiwifarms.st/threads/dec-15-2019-foreclosure-saga.64148/

Phil blew off the mediation.

And it looks like he's going to blow off the MidFirst request to remove the CTKhando from the bankruptcy.

 

[Mr. Brown]

How long do you think it will be before Phil blames Rochelle for doing everything wrong and ruining his life on stream?

 

[actually]

And it looks like he's going to blow off the MidFirst request to remove the CTKhando from the bankruptcy.

If nothing shows up tomorrow, we can safely say he did. Any countermotions were due on the 3rd.

 

[architect]

And it looks like he's going to blow off the MidFirst request to remove the CTKhando from the bankruptcy.

The Connecticut condo isn't getting removed from the bankruptcy, Phil surrendered the property in his bankruptcy petition. Usually the mortgage holder would have to wait until the bankruptcy proceedings are concluded to continue the foreclosure but they can opt to accelerate the process by filing a motion for relief from automatic stay. There might be a deficiency after the property is auctioned off but if Phil gets his Chapter 7 discharge he won't have to pay it back.

 

[actually]

Dumb question time. Is Rochelle done with representing Phil? My understanding was that the 341 meeting was her last obligation. Is that correct?

 

[AnOminous]

If nothing shows up tomorrow, we can safely say he did. Any countermotions were due on the 3rd.

At that point the only issue is whether there's even a hearing or whether the judge just grants it.

The Connecticut condo isn't getting removed from the bankruptcy, Phil surrendered the property in his bankruptcy petition.

It's not his to surrender. Midfirst owns it and nobody else has a superior claim. Midfirst's claim far exceeds the value of the property. That's the reason they moved to lift the stay. It would harm them to delay their sale of the property and since nobody else has any legitimate claim to it, they're not prejudiced by lifting the stay and selling it free and clear to whoever buys it at auction.

 

[Kosher Dill]

Is Rochelle done with representing Phil?

I bet she's going to keep stringing him along $1200 at a time.

 

[hector85]

I bet she's going to keep stringing him along $1200 at a time.

is she gonna keep letting him pay in installments though? or are we gonna get another $1200 begging stream?

 

[Kosher Dill]

is she gonna keep letting him pay in installments though? or are we gonna get another $1200 begging stream?

Hello hello hello, ladies and gentlemen *SNOOOOOORT* Today I am going to announce our NEW tips goal! Every stream, if we reach $1200 I will put on the vest, cowboy hat, Sonic hat, Yoshi hat, Assassins Creed robe, Deadpool mask, and Bob Ross beard! How's that for some chill interactions!

 

[architect]

It's not his to surrender. Midfirst owns it and nobody else has a superior claim. Midfirst's claim far exceeds the value of the property. That's the reason they moved to lift the stay. It would harm them to delay their sale of the property and since nobody else has any legitimate claim to it, they're not prejudiced by lifting the stay and selling it free and clear to whoever buys it at auction.

They own the secured debt and the property lien. They don't own the property itself yet, that's the whole point of this motion for relief. The moment Phil filed for bankruptcy all collection efforts, including foreclosure proceedings, stopped due to the automatic stay. Secured debt holders can file a motion for relief from automatic stay, which makes sense because why shouldn't they be able to recover some money from the property that the person filing for bankruptcy doesn't want to keep anyway? But I've seen multiple people in this thread claim that this is going to somehow let MidFirst circumvent the bankruptcy or put a lien on the WAKhando and that's simply not true.

 

[actually]

But I've seen multiple people in this thread claim that this is going to somehow let MidFirst circumvent the bankruptcy and put a lien on the WAKhando and that's simply not true.

That's presumably the next step for them, though, given that they will be in the hole somewhere in the neighborhood of $40-50k, right?

 

[Sir Wesley Tailpipe]

They own the secured debt and the property lien. They don't own the property itself yet, that's the whole point of this motion for relief. The moment Phil filed for bankruptcy all collection efforts, including foreclosure proceedings, stopped due to the automatic stay. Secured debt holders can file a motion for relief from automatic stay, which makes sense because why shouldn't they be able to recover some money from the property that the person filing for bankruptcy doesn't want to keep anyway? But I've seen multiple people in this thread claim that this is going to somehow let MidFirst circumvent the bankruptcy or put a lien on the WAKhando and that's simply not true.

I think there’s strong odds of Phil being denied bankruptcy, given his dodgy paperwork and improper separation of accounts.

Separation, hell, he doesn’t appear to even HAVE accounts just for his “business”. I have seen 6-year olds running lemonade stands with more business acumen than the Polish Potato.

 

[tzgnilki]

They own the secured debt and the property lien. They don't own the property itself yet, that's the whole point of this motion for relief. The moment Phil filed for bankruptcy all collection efforts, including foreclosure proceedings, stopped due to the automatic stay. Secured debt holders can file a motion for relief from automatic stay, which makes sense because why shouldn't they be able to recover some money from the property that the person filing for bankruptcy doesn't want to keep anyway? But I've seen multiple people in this thread claim that this is going to somehow let MidFirst circumvent the bankruptcy or put a lien on the WAKhando and that's simply not true.

not trying to be a dick, but can you explain why midfirst wouldn't be allowed to pursuit the deficiency even with approval?

 

[QwahlityKahntent]

How long do you think it will be before Phil blames Rochelle for doing everything wrong and ruining his life on stream?

"she did everything wrong! she did nothing correct!"

 

[Bort Snurnell]

Midfirst would still be able to go after the deficiency. If they are granted relief from stay, which is looks like they will, they will move forward to foreclose. Now in Washington state, they can only get a deficiency judgment if it’s a judicial foreclosure. There also may be some amount of time they have to wait before going after the deficiency.

 

[architect]

That's presumably the next step for them, though, given that they will be in the hole somewhere in the neighborhood of $40-50k, right?

not trying to be a dick, but can you explain why midfirst wouldn't be allowed to pursuit the deficiency even with approval?

A motion for relief from automatic stay lifts the automatic stay so the lender can take possession of the property and sell it even before the bankruptcy is finalized and debts are discharged. A lift from automatic stay does not mean that the bankruptcy itself somehow doesn't apply anymore. It's there so creditors who are already hurt by a bankruptcy don't have to lose even more money because they had to wait months before they could take possession of property that the debtor didn't want to keep anyway.

 

[tzgnilki]

A motion for relief from automatic stay lifts the automatic stay so the lender can take possession of the property and sell it even before the bankruptcy is finalized and debts are discharged. A lift from automatic stay does not mean that the bankruptcy itself somehow doesn't apply anymore. It's there so creditors who are already hurt by a bankruptcy don't have to lose even more money because they had to wait months before they could take possession of property that the debtor didn't want to keep anyway.

I just assumed the relief from stay was an opportunity to continue debt collection granted by the court, and I just assumed the deficiency was debt, I guess not?

 

[Kosher Dill]

and I just assumed the deficiency was debt, I guess not?

The deficiency is whatever debt is left over from the CT Khando's mortgage after Midfirst forecloses and sells it.

 

[AnOminous]

They own the secured debt and the property lien. They don't own the property itself yet, that's the whole point of this motion for relief. The moment Phil filed for bankruptcy all collection efforts, including foreclosure proceedings, stopped due to the automatic stay. Secured debt holders can file a motion for relief from automatic stay, which makes sense because why shouldn't they be able to recover some money from the property that the person filing for bankruptcy doesn't want to keep anyway? But I've seen multiple people in this thread claim that this is going to somehow let MidFirst circumvent the bankruptcy or put a lien on the WAKhando and that's simply not true.

If the bankruptcy is dismissed, they can file a lien on the property by filing their judgment in the relevant county in Washington. Possibly just lifting the stay is enough to allow this. It will then be a security interest subordinate to the main mortgage. If the bankruptcy is converted to Chapter 13 instead, then they'll be an unsecured debt like the others and, like the others, will probably get at least something, at least until Phil defaults on his monthly payments.

They're not "circumventing" the bankruptcy by filing a motion to lift the stay. Bankruptcy law allows them to do that. And they don't need to go for a judicial foreclosure. They could have foreclosed nonjudicially without going to court before the bankruptcy was even filed. The only reason to go judicial in this case, when it is more expensive and time consuming, is to get a deficiency judgment, and in light of the bankruptcy, they wouldn't waste their time doing this if they thought it was completely hopeless and they couldn't possibly collect on it.

It's there so creditors who are already hurt by a bankruptcy don't have to lose even more money because they had to wait months before they could take possession of property that the debtor didn't want to keep anyway.

And if that's all they cared about, they could have already done it.

 

[architect]

If the bankruptcy is dismissed, they can file a lien on the property by filing their judgment in the relevant county in Washington. Possibly just lifting the stay is enough to allow this. It will then be a security interest subordinate to the main mortgage. If the bankruptcy is converted to Chapter 13 instead, then they'll be an unsecured debt like the others and, like the others, will probably get at least something, at least until Phil defaults on his monthly payments.

They're not "circumventing" the bankruptcy by filing a motion to lift the stay. Bankruptcy law allows them to do that. And they don't need to go for a judicial foreclosure. They could have foreclosed nonjudicially without going to court before the bankruptcy was even filed. The only reason to go judicial in this case, when it is more expensive and time consuming, is to get a deficiency judgment, and in light of the bankruptcy, they wouldn't waste their time doing this if they thought it was completely hopeless and they couldn't possibly collect on it.

I don't believe we're in disagreement over this. I also suspect that Midfirst probably thinks the case will be dismissed or converted since it's uncommon to request a relief from stay in a Chapter 7 bankruptcy. But people are getting ahead of themselves if they think the motion for relief in itself means they could put a lien on the WAkhando for example. The court would still have to actually dismiss Phil's case for that to happen.