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I guess we need a thread on this.
-scroll down for updated information in chronological order-
- Mirror of the bankruptcy segment of January 16, 2020's early stream, where DSP reveals to the public he's in the process of filing for bankruptcy:
- Very brief summary:
- basically all information about the foreclosure [thread] is confirmed to be correct (mortgage company is selling the home, probably for tens of thousands of dollars less than what DSP still owes on it)
- to get rid of his debts and save his Renton house, DSP is filing for bankruptcy
- might have to sell possessions, but "important" possessions (consoles, streaming equipment, the car etc.) should be safe, according to DSP('s bankruptcy lawyer)
- once the bankruptcy is in full effect, (most of) DSP's financial information will be publicly available
- Lengthier summary, courtesy of @Prince Lotor:
-UPDATE- January 18, 2020 => general information on types of bankruptcy (Chapter 7, 13 etc.) (added by actually)
Information on types of bankruptcies:
www.nolo.com
www.nolo.com
www.nolo.com
-UPDATE- JANUARY 31, 2020 => DSP has officially filed for Chapter 7 bankruptcy
As of today, DSP has officially filed for bankruptcy and the bankruptcy forms, which means a lot of DSP's financial information, have become public. You'll find them at the bottom of this OP and in the following post:
Fist analysis of the filled-out forms:
Bankruptcy analysis and FAQ thread:
kiwifarms.net
Got a question you want to see answered and added to the FAQ? Use this thread:
kiwifarms.net
@SoapQueen1 has made a thread in the LLP subforums with discussion of the legal implications:
kiwifarms.net
-UPDATE- February 3, 2020 => a '341(a) Meeting of Creditors' has been scheduled for March 5, 2020, at 10:00 AM.
- 341(a) Meeting script
(http://www.chi13.com/Web/341script.html)
- 341(a) Meeting recording
Note: DSP's meeting could be (slightly) different, but the examples above should give a good impression of the general idea.
-scroll down for updated information in chronological order-
- Mirror of the bankruptcy segment of January 16, 2020's early stream, where DSP reveals to the public he's in the process of filing for bankruptcy:
- Very brief summary:
- basically all information about the foreclosure [thread] is confirmed to be correct (mortgage company is selling the home, probably for tens of thousands of dollars less than what DSP still owes on it)
- to get rid of his debts and save his Renton house, DSP is filing for bankruptcy
- might have to sell possessions, but "important" possessions (consoles, streaming equipment, the car etc.) should be safe, according to DSP('s bankruptcy lawyer)
- once the bankruptcy is in full effect, (most of) DSP's financial information will be publicly available
- Lengthier summary, courtesy of @Prince Lotor:
- @SoapQueen1's estimations of DSP's options from the "Foreclosure" thread, including Bankruptcy and its details:
-UPDATE- January 18, 2020 => general information on types of bankruptcy (Chapter 7, 13 etc.) (added by actually)
Information on types of bankruptcies:
How to File Bankruptcy in Washington State
Learn how to find some of the information you will need when filing for bankruptcy in Washington state.
www.nolo.com
What Are the Differences Between Chapter 7 and Chapter 13 Bankruptcy?
Chapter 7 and 13 bankruptcy each offer different benefits to filers. Check out our handy table listing the differences between Chapter 7 and Chapter 13 bankruptcy.
www.nolo.com
Washington Bankruptcy Exemptions
The Washington bankruptcy exemptions help you protect your property in bankruptcy. Get the details.
www.nolo.com
The means test measures your income and debt. The outcome will determine which chapter you’ll need to file to discharge (erase) debt.
- Chapter 7 bankruptcy. If your household income is lower than the median income of your state, you can receive a discharge in a Chapter 7 case. If it’s higher, you might still pass the means test after subtracting allowed expenses. If you qualify for Chapter 7 but want to take advantage of benefits only afforded in Chapter 13—such as catching up on a home loan—then you can pay into a three-year Chapter 13 plan, rather than a five-year plan.
- Chapter 13 bankruptcy. If your income exceeds the Chapter 7 limits, your bankruptcy options will be limited to paying into a five-year Chapter 13 repayment plan. But doing so isn’t automatic. You must have enough income to pay all required debts. Determining your Chapter 13 bankruptcy payment requires a calculation similar to that in Chapter 7. You’ll pay whichever is greater: your disposable income, the value of your nonexempt property, or the amount of your nondischargeable debt (such as support obligations and tax debt).
Here's what will happen to nonexempt property (things you can’t protect with an exemption):
The homestead exemption protects up to $125,000 of equity in a debtor’s home or principal residence, including a manufactured or mobile home. The exemption is reduced to $15,000 for other personal property used as a residence. (RCW §§ 6.13.010, 6.13.020, 6.13.030.)
Washington Motor Vehicle Exemption
A debtor can exempt up to $3,250 in one motor vehicle. Spouses filing jointly can each exempt a vehicle. (RCW § 6.15.010(1)(d)(iii).)
Washington Wildcard Exemption
A filer can exempt up to $3,000 worth of any type of personal property other than wages with the following limitations: no more than $1,500 total in cash, $500 for bank accounts, and $2,500 toward educational loans. (RCW § 6.15.010(1)(d)(ii).)
Washington Tools of the Trade Exemption
A debtor can exempt up to $10,000 in tools, instruments, and materials used to carry on his or her trade. Special exemptions are available for farmers, physicians, attorneys, and clergymen. (RCW § 6.15.010(1)(e)(i)-(iii).)
- In a Chapter 7 bankruptcy, the trustee appointed to manage your matter will sell any nonexempt property and distribute the proceeds to creditors according to the bankruptcy payment rules.
- By contrast, you can keep all of your property in a Chapter 13 bankruptcy. But, there’s a catch. You must pay the nonexempt property value to your creditors through the three- to five-year Chapter 13 repayment plan.
The homestead exemption protects up to $125,000 of equity in a debtor’s home or principal residence, including a manufactured or mobile home. The exemption is reduced to $15,000 for other personal property used as a residence. (RCW §§ 6.13.010, 6.13.020, 6.13.030.)
Washington Motor Vehicle Exemption
A debtor can exempt up to $3,250 in one motor vehicle. Spouses filing jointly can each exempt a vehicle. (RCW § 6.15.010(1)(d)(iii).)
Washington Wildcard Exemption
A filer can exempt up to $3,000 worth of any type of personal property other than wages with the following limitations: no more than $1,500 total in cash, $500 for bank accounts, and $2,500 toward educational loans. (RCW § 6.15.010(1)(d)(ii).)
Washington Tools of the Trade Exemption
A debtor can exempt up to $10,000 in tools, instruments, and materials used to carry on his or her trade. Special exemptions are available for farmers, physicians, attorneys, and clergymen. (RCW § 6.15.010(1)(e)(i)-(iii).)
-UPDATE- JANUARY 31, 2020 => DSP has officially filed for Chapter 7 bankruptcy
As of today, DSP has officially filed for bankruptcy and the bankruptcy forms, which means a lot of DSP's financial information, have become public. You'll find them at the bottom of this OP and in the following post:
He filed with the court. I can get documents in a minute or someone else can.
He's counting over $5000 per month of business expenses.
Docket for Philip P Burnell, 20-10323 - CourtListener.com
Docket for Philip P Burnell, 20-10323 — Brought to you by the RECAP Initiative and Free Law Project, a non-profit dedicated to creating high quality open legal information.www.courtlistener.com
Fist analysis of the filled-out forms:
[click here for the original post]
First analysis:
He's filing under Chapter 7 which requires debtors to liquidate their non-exempt property. DSP can only claim $125K equity in his WA condo and $3,250 in his car are exempt. His own filing indicates he has $345K equity in his WA condo and $16K equity in his car. He would be required to sell both to satisfy the requirements of Chapter 7. I can't think of a situation in which he can reaffirm the mortgage and keep the condo or enter into a modified or reaffirmed agreement to keep the car if he really has this much equity in each.
Not only is there no known argument to back up this reaffirmation of the mortgage, the entire equity calculation is sloppy or a lie to begin with. The filing states Zillow values it at $379K yet Zillow actually values it at $410K. The historical estimated value on Zillow is there for all to see and hasn't been as low as $379K since January of 2016. Redfin and Realtor.com suggest similar units in his gated community are worth $413-414K minimum. This places his initial equity at $279K. The following items then get deducted from the potential sale price of $410K, as far as I know:
I have no idea how they're planning to exempt his car if he really has this much equity in it. Even after trustee commission it's worth too much.
His business expenses clock in at over $5,000 per month which is nonsense and is likely more lies. Again, all it takes is the trustee, judge, or one of his creditors asking for a detailed statement of these expenses and they will most likely find out he's calling his entire WA condo a business expense and he will lose all credibility because that is a material misrepresentation. The trustee, judge, or a creditor will immmediately demand he correct his bankruptcy filing or just ask that it be dismissed entirely. If he's telling the IRS his entire condo is a business expense that's actually hilarious tax fraud and they will find out about it eventually.
He is claiming he owns no electronics and no collectibles which is almost certainly a lie, but doesn't probably affect anything other than his credibility because it would all be exempt anyway.
[/QUOTE]
First analysis:
He's filing under Chapter 7 which requires debtors to liquidate their non-exempt property. DSP can only claim $125K equity in his WA condo and $3,250 in his car are exempt. His own filing indicates he has $345K equity in his WA condo and $16K equity in his car. He would be required to sell both to satisfy the requirements of Chapter 7. I can't think of a situation in which he can reaffirm the mortgage and keep the condo or enter into a modified or reaffirmed agreement to keep the car if he really has this much equity in each.
Not only is there no known argument to back up this reaffirmation of the mortgage, the entire equity calculation is sloppy or a lie to begin with. The filing states Zillow values it at $379K yet Zillow actually values it at $410K. The historical estimated value on Zillow is there for all to see and hasn't been as low as $379K since January of 2016. Redfin and Realtor.com suggest similar units in his gated community are worth $413-414K minimum. This places his initial equity at $279K. The following items then get deducted from the potential sale price of $410K, as far as I know:
- the homestead exemption: $125K
- trustee commissions (something similar to 25% of the first $5K of non-exempt equity, 10% of the next $50K, and 5% of the remainder): $17,750
- realtor commissions (they claim 9% of the sale price): $36,900
- amount owed on the mortgage: $227,000
I have no idea how they're planning to exempt his car if he really has this much equity in it. Even after trustee commission it's worth too much.
His business expenses clock in at over $5,000 per month which is nonsense and is likely more lies. Again, all it takes is the trustee, judge, or one of his creditors asking for a detailed statement of these expenses and they will most likely find out he's calling his entire WA condo a business expense and he will lose all credibility because that is a material misrepresentation. The trustee, judge, or a creditor will immmediately demand he correct his bankruptcy filing or just ask that it be dismissed entirely. If he's telling the IRS his entire condo is a business expense that's actually hilarious tax fraud and they will find out about it eventually.
He is claiming he owns no electronics and no collectibles which is almost certainly a lie, but doesn't probably affect anything other than his credibility because it would all be exempt anyway.
[/QUOTE]
Bankruptcy analysis and FAQ thread:
Bankruptcy Analysis and FAQ Thread
TL;DR Overview Phil has filed for bankruptcy as of Jan 31st, 2020. He claims business expenses of approximately $5000 a month (including $9000 in July 2019), which is likely bullshit (see spoilers below). The monthly income estimations have been proven to be extremely accurate, with all months...
TL;DR Overview
Phil has filed for bankruptcy as of Jan 31st, 2020. He claims business expenses of approximately $5000 a month (including $9000 in July 2019), which is likely bullshit (see spoilers below). The monthly income estimations have been proven to be extremely accurate, with all months failing within (or very close to the range) of the numbers from the DSP Savings and Loan thread. Kat is confirmed to be working part-time retail, currently at Fred Meyer. Based on reported salary, she's working about 20 hours a week. From the filed documents, it looks like Phil is trying to flat out lie to the court. This is going to be broken down in detail below.
Phil's Debts
Federal Taxes = $15,000 (It's not clear if this is just remaining from 2018, or if this includes an estimation of 2019's federal taxes as well. Presumably it's only 2018.
WA Condo = $227,448.00 (30 year apparently fixed 5% interest; started at $251,750 on May 22nd, 2014; amortization schedule can be calc'd here)
CT Condo = $105,890.00
2017 Toyota Corolla = $14,328.00 (with all of 5000 miles put on it
)
American Express CC = $1,128.00
American Express CC = $6,422.00
Bank of America = $26,038.00
BMW Bank of North America = $2,741.00
Capital One CC = $10,751.00
Chase CC = $14,100.00
CitiBank CC = $8,508.00
Citibank CC = $13,885.00
Citibank = $15,601.74
Discover CC = $10,053.00
Lending Club Corporation = $9,397.00
Prosper Marketplace, Inc. = $4,355.00
SYNCB/Sam's = $3,819.00
US Bank = $4,751.54
Total CC/Loan Debt = $131,550.28
All Debt = $479888.28
Phil has filed for bankruptcy as of Jan 31st, 2020. He claims business expenses of approximately $5000 a month (including $9000 in July 2019), which is likely bullshit (see spoilers below). The monthly income estimations have been proven to be extremely accurate, with all months failing within (or very close to the range) of the numbers from the DSP Savings and Loan thread. Kat is confirmed to be working part-time retail, currently at Fred Meyer. Based on reported salary, she's working about 20 hours a week. From the filed documents, it looks like Phil is trying to flat out lie to the court. This is going to be broken down in detail below.
Phil's Debts
Federal Taxes = $15,000 (It's not clear if this is just remaining from 2018, or if this includes an estimation of 2019's federal taxes as well. Presumably it's only 2018.
WA Condo = $227,448.00 (30 year apparently fixed 5% interest; started at $251,750 on May 22nd, 2014; amortization schedule can be calc'd here)
CT Condo = $105,890.00
2017 Toyota Corolla = $14,328.00 (with all of 5000 miles put on it
)American Express CC = $1,128.00
American Express CC = $6,422.00
Bank of America = $26,038.00
BMW Bank of North America = $2,741.00
Capital One CC = $10,751.00
Chase CC = $14,100.00
CitiBank CC = $8,508.00
Citibank CC = $13,885.00
Citibank = $15,601.74
Discover CC = $10,053.00
Lending Club Corporation = $9,397.00
Prosper Marketplace, Inc. = $4,355.00
SYNCB/Sam's = $3,819.00
US Bank = $4,751.54
Total CC/Loan Debt = $131,550.28
All Debt = $479888.28
Got a question you want to see answered and added to the FAQ? Use this thread:
DSP Bankruptcy Questions
I'm trying to organize this Category 6 'tism hurricane so we can have easily read information available. Accordingly, I'm making this thread for bankruptcy questions. Thread rules: 1) Questions only. No comments, responses to other questions, etc. 2) Try and avoid repeats. If you want to add...
@SoapQueen1 has made a thread in the LLP subforums with discussion of the legal implications:
Philip P. Burnell (20-10323)
DarksydePhil / TheyCallMeDSP / Phil Burnell declared bankruptcy under Chapter 7 on January 31, 2020 two weeks after announcing he was in the process of doing so. The filings with the court can be seen and downloaded here. The documents are also attached. Under Chapter 7 a person with less than...
-UPDATE- February 3, 2020 => a '341(a) Meeting of Creditors' has been scheduled for March 5, 2020, at 10:00 AM.
Examples of how 341(a) Meetings are conducted in general:
- 341(a) Meeting script
341 Meeting Structure and Questions
This page describes the structure of the 341 meeting and the questions that our office asks during the meeting.
OVERVIEW
§341 of the Bankruptcy Code states that "trustee shall call a meeting of creditors to be held. The business of the meeting shall include the examination of the debtor under oath." The meeting is held by a member of the trustee's staff. The debtor, joint debtor and the debtor attorney are required to attend the meeting. Creditors may attend if they wish.
The purpose of meeting is to review the petition and schedules with the debtor to ensure they are accurate, resolve any issues that may impact confirmation of the plan and to give creditors an opportunity to question the debtor.
MEETING
Prepare computer and escort attendees to room.
Update information on 341 worksheet.
This page describes the structure of the 341 meeting and the questions that our office asks during the meeting.
OVERVIEW
§341 of the Bankruptcy Code states that "trustee shall call a meeting of creditors to be held. The business of the meeting shall include the examination of the debtor under oath." The meeting is held by a member of the trustee's staff. The debtor, joint debtor and the debtor attorney are required to attend the meeting. Creditors may attend if they wish.
The purpose of meeting is to review the petition and schedules with the debtor to ensure they are accurate, resolve any issues that may impact confirmation of the plan and to give creditors an opportunity to question the debtor.
MEETING
Prepare computer and escort attendees to room.
- Select case in the 341 worksheet function.
- Announce case in the reception area and attorney area.
- Escort people to room and have everyone sit down.
- Turn on the recorder
- Complete recording label information.
- Good morning. My name is hearing officer, I will be the hearing officer for this meeting of creditors required by section 341 of the bankruptcy code. I am a representative for the trustee in this case.
- This meeting will be tape recorded as required by bankruptcy rules. I would like everyone to please speak clearly when asking or answering questions.
- This is the case of debtor names.
- Case number case number.
- Today is date.
- address debtor attorney Counsel, please state your appearance.
- Debtor attorney announces name and client's name.
- address debtors Please state your name for the record.
- Debtor announces name.
- address creditor representatives Please state your appearance.
- Creditor representatives announce name and the creditor they represent.
- We are here today to make sure the documents you and your attorney have submitted to the bankruptcy court are correct. Also, we will try to make sure your plan to repay your creditors will work. In order to do that, I will ask you some questions.
- If any creditors are present Creditors will have an opportunity to ask you questions about your case.
- Before we start with questions, I will ask you to take an oath to tell the truth.
- Please raise your right hand.
- Do you swear or affirm the testimony you are about to give is the truth, the whole truth and nothing but the truth?
- Debtor must answer yes aloud.
- Thank you. If at any time you want to ask me a question, please feel free to do so.
- Debtor's first name, joint debtor's first name are you married to each other?
- Use information from petition and question the debtor:
- Mr./Ms. debtor's last name have you used any other names during the last 6 years?
- Is your social security number debtor social security #?
- Do you live at debtor's address?
- Have you ever filed bankruptcy before? (Skip this question if a joint case.)
- Is your mailing address debtor's mailing address?
- Have you used any other names in the last 6 years?
- Is your social security number joint debtor social security #?
- Do you live at debtor's address?
- Have either of you ever filed bankruptcy before?
- How long have you been on your job?
- Is this the same employer/job you had in the last case?
- If it is the same job, ask why this case will work when the last one didn't.
- Did you receive help with the filing of your petition, schedules and plan?
- If yes, what is the occupation of this person?
- Did you pay them for their services and how much?
- Obtain the name, occupation, phone number and address of the person.
- Our office mailed you documents regarding the operation of your business. Did you receive them?
- If yes, ask for the completed forms.
- If no, give them a copy and explain we must have the completed forms one week prior to the confirmation date.
- Do you have any questions about the forms?
- Show debtor/joint debtor copy of petition and schedules.
- This is a copy of your petition. Did you see these documents before you signed them?
- Have you listed all of your property in these documents?
- Review schedules A and B.
- Have you listed everyone you owe money to in these documents?
- Review schedules D, E and F.
- Did you bring a pay stub with you today?
- Ask for all of the stubs available.
- Verify the accuracy of the scheduled income.
- Have there been any significant changes to your budget?
- address creditor representatives Do you have any questions?
- Limit the creditor to questions about collateral and insurance issues.
- Ask about the creditor's claim amount if not on file.
Update information on 341 worksheet.
- address debtor attorney Are there any unpaid attorney fees?
- Enter data on system.
- Verify the following dollar amounts and numbers and inform the parties of the terms of the plan..
- monthly plan payment
- months in plan
- estimated percent.
- Recalculate computer worksheet.
- We recommend that all plan payments to the trustee be made through payroll deduction. We have found that cases have a better chance of success when on payroll and you don't have to purchase a cashiers check or money order.
- Do you want payroll deductions?
- If debtor agrees to payroll deduction:
- Print order.
- Explain order.
- Have debtor sign order.
- If debtor refuses payroll deduction:
- You should understand that if you miss a payment, the judge can order payroll deduction or dismiss your case without your permission.
- Explain how to make payments to our office.
- If the debtor agreed to payroll, explain that they should make a payment every time they are paid until they see the deductions coming out of their check.
- Explain information on it.
- Give the debtor payment envelopes.
- Mr./Ms. debtor's last name, do you have any questions at this time?
- No further action required by debtor attorney:
- The confirmation hearing will be on date.
- Address debtor attorney Our office requires no additional information or documents at this time. You may contact the trustee's attorney staff attorney name if you have any questions regarding the confirmation hearing.
- Good luck to you. This meeting is adjourned.
- If debtor attorney must do something:
- The confirmation hearing will be on date.
- address debtor attorney Our office requires the following things from you:
- State documents that must be provided or amended.
- State any other requirements.
- This must be done at least one week prior to the confirmation hearing.
- You may contact the trustee's attorney staff attorney name if you have any questions regarding the confirmation hearing.
- Good luck to you. This meeting is adjourned.
- Turn off the recorder.
- Excuse everyone from the room.
- Enter the meeting result and any necessary notes.
- Print a copy of the worksheet.
- Make copies of the confirmation order, payroll order and any other necessary documents.
- File documents and return the case file to the front desk.
- 341(a) Meeting recording
Note: DSP's meeting could be (slightly) different, but the examples above should give a good impression of the general idea.
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