[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

  • Order for the new server will be going in ASAP. Performance will be rocky until then (rip).

How much debt (not including mortgages, but including car) does Phil actually have?

  • Less than $100,000

    Votes: 33 4.9%
  • $100,000-$200,000

    Votes: 156 23.1%
  • $200,000-$300,000

    Votes: 110 16.3%
  • $300,000+

    Votes: 375 55.6%

  • Total voters
    674

tzgnilki

kiwifarms.net
If you think the court is actually going to give him the ch. 7 then I have a horse I want to sell you.
the only way I see him being fucked, is possibly after bankruptcy where the fbi will investigate bankruptcy fraud

:optimistic:

bankruptcy court is just a government sponsored sweatshop where they probably have no integrity and just wave everyone through, something major would need to happen otherwise he'll just walk-through like everything else in his life
 

AnOminous

Really?
True & Honest Fan
Retired Staff
kiwifarms.net
the only way I see him being fucked, is possibly after bankruptcy where the fbi will investigate bankruptcy fraud

:optimistic:

bankruptcy court is just a government sponsored sweatshop where they probably have no integrity and just wave everyone through, something major would need to happen otherwise he'll just walk-through like everything else in his life
He owes six figures to lots of people while obviously having a high income, transparently bogus claims of expenses, and people who are paid based on what they collect.
 

darkwingosonichugorl

kiwifarms.net
bankruptcy court is just a government sponsored sweatshop where they probably have no integrity and just wave everyone through, something major would need to happen otherwise he'll just walk-through like everything else in his life
If it wasn't for Phil's massive reckless credit card debt, I would put odds on him skating through like always. From everything I read, at the least Citibank and Bank of America are going to get their $30k+ back. When that happens, it's just a matter of time before he loses the WAkhando.
 

Beetus Knuckles

kiwifarms.net
He owes six figures to lots of people while obviously having a high income, transparently bogus claims of expenses, and people who are paid based on what they collect.
He better have a dang explanation why he conviently omitted his PayPal account. I’m hoping that where his district is a tech hub, the trustees will be on the look out for things like this. I also hope he charged his taxes to a card so he’ll be unable to discharge that debt too. Hardcore begging when he has to lawyer up for an AP or a 2004 exam.
 

SoapQueen1

speed bump, failed business, retired tism wrangler
True & Honest Fan
Retired Staff
kiwifarms.net
To be clear, PayPal is not a bank. The spirit of the question probably was that the PayPal account should be included, but the letter of the question allowed a stupid or malicious debtor to not list it.
 

Iamfrigide

kiwifarms.net
Hey, I made an account to ask this, as I've been watching this with great interest. IS there a way Phil can get out of this unscathed? is his lawyer good enough to pull a big brain on the courts and slide him through under the bar of bureaucratic indifference? There's lots of speculation going around, and as I understand it (I'm not American), they won't force him into homelessness, I think I read that a few times. What if he really is the golden pig and none of the creditors decide to show up and the judge just shrugs and says here you go, you're bankrupt, congratulations.
 

darkwingosonichugorl

kiwifarms.net
Best case scenario for Phil is that he loses around half his debt and is put on a reaffirmation agreement that will require far more financial discipline than he's ever shown in his life, and he'll be miserable with little spending money. What Phil thinks is going to happen is definitely not going to happen. Just sit back and enjoy the process, it's going to take some time.
 

the khat quaffer

resplendent!
kiwifarms.net
Hey, I made an account to ask this, as I've been watching this with great interest. IS there a way Phil can get out of this unscathed? is his lawyer good enough to pull a big brain on the courts and slide him through under the bar of bureaucratic indifference? There's lots of speculation going around, and as I understand it (I'm not American), they won't force him into homelessness, I think I read that a few times. What if he really is the golden pig and none of the creditors decide to show up and the judge just shrugs and says here you go, you're bankrupt, congratulations.
>is there a way phil can pigroach his way out

I know the 128-page thread is daunting; however, if you go back at least one or two pages, this question has been answered by actually, AnOminous, and SoapQueen1. They're essentially carrying the thread.

Short answer is that it depends on how much he's actually spending on duh business every month and how the trustee values his WAkhando. As it is, Phil used an old Zillow value (and took out 9% of the price for a realtor), which put the equity at just below $125,000, which is the exemption amount in WA. So under Chapter 7, the WAkhando would be exempt. However, his valuation of the condo is low--every site I found put the value at anywhere from $410k-$450k and other similar condos in his neighborhood have sold for that. In addition, he finagled his expenses so that he just met the threshold income for Chapter 7--basically, he claimed an average of $5000 or so in "business expenses" each month. If he can't prove that he actually spends that much on legit expenses (and no one can figure out even a longshot way he gets to that amount), that will change his income numbers and he probably won't qualify for Chapter 7 anymore.
Phil's gonna get fucked when he has to fork over the bank statements. The creditors are for sure going to want to take a look at his July 2019 transactions when he claims to have had $9,086.95 in business expenses alone. He filed his bankruptcy petition at the very end of January to make sure that month was on it, which really skews his net income. With it, he's claiming $9,234.53 in monthly income with $5,243.84 in monthly expenses for a net income of $3,990.69. Combine that with Kat's monthly income of $1,742.32 and you get the $5,733.01 that Phil provided. Keep in mind that Phil wants to get as close as possible to Washington's median monthly income for a family of 2 of $5,541 so he can qualify for Chapter 7 bankruptcy. If we take the skewed month out and do just the last 5 months of income, he's at $9,437.58 in monthly income ($203 more) with $4,474.22 in monthly expenses ($769 less) for a net income of $4,963.36. Combined with Kat's $1,742.32, this puts their monthly income at $6,705.68. This is important because this would put their income just slightly below the state average of $6,845 for a family of 3 (sorry Phil, Jasper doesn't count) and way above the income for a family of 2, thus most likely disqualifying Phil from Chapter 7.

In short: Phil including July 2019 makes a net difference of $972 per month. He definitely doesn't want Chapter 13 and is desperately cooking the books to make it happen. Something tells me that Phil didn't realize he's going to have to prove his claims with actual evidence and thought everything would be through the petition that he could bullshit. It's why he was at first so adamant that there were no mistakes until literally everybody pointed out all the shit wrong with it and he changed his story.

The long and short of it is he will not come out of it unscathed in any plausible scenario. That won't happen and neither will he go to jail or get his kneecaps busted for reasons that should be obvious. His ambitions and his understanding of the bankruptcy process in general are laughably absurd and the biggest question on everyone's mind is whether he'll lose the wakando. It's very, very possible.

You want to watch this video.

 

Prince Lotor

. . .and the blackest eyes. The Devil's eyes.
kiwifarms.net
I think DSP might actually be fucked this time, If I was him I would have tried to at least make an effort and sell the car. Tell the judge they can repo the car but I want my wakando. DSP has gotten so lucky over the years but I think this one won't be so easy for him. His only chance is that their is so much paperwork that his documents slip through courts as some bored intern gives his documents a quick glance.
There's actually apoint about his car that I think may be being misapprehended. Nick 'Internet lawyer' explained in the stream. Phil's car is worth about $15K and Phil still owes around $14K on the loan for that car, that means Phil only has approximately a little over $1K equity in his vehicle and the vehicle exemption goes up to like $3,250. He said Phil will keep his car in the bankruptcy.
 
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AnOminous

Really?
True & Honest Fan
Retired Staff
kiwifarms.net
To be clear, PayPal is not a bank. The spirit of the question probably was that the PayPal account should be included, but the letter of the question allowed a stupid or malicious debtor to not list it.
His only victim will be himself if they find out about this non-exempt asset they can freely have liquidated. I guess he just didn't want it protected.
 
I can totally see something like that happening at a hearing where they're asking questions about his flawed filing, and plays a video from his own channel pointing out lies and shit. Bonus points if they use a tractor video so he doesn't get the views.
I can see it now:
“The accuser says that he has evidence that Mr. Burnell is lying about his filings. Will the accuser take the stand?”
“Thank you, your honer. Ladies and gentlemen of the jury, allow me to present to you exhibit A:”
Snort Burnell intro plays
 

architect

kiwifarms.net
Hey, I made an account to ask this, as I've been watching this with great interest. IS there a way Phil can get out of this unscathed? is his lawyer good enough to pull a big brain on the courts and slide him through under the bar of bureaucratic indifference? There's lots of speculation going around, and as I understand it (I'm not American), they won't force him into homelessness, I think I read that a few times. What if he really is the golden pig and none of the creditors decide to show up and the judge just shrugs and says here you go, you're bankrupt, congratulations.
There are too many variables to say with certainty what's going to happen. What we do know is that the petition as it stands right now doesn't hold up under any serious scrutiny. That in itself leads to the most interesting question: will the trustee find sufficient evidence that phil has tried to hide assets and exaggerate or fabricate expenses in order to abuse the bankruptcy system? If she does, it could lead to the worst-case scenario for Phil: his case is dismissed with prejudice. This would mean that all his creditors get to eat him alive. It's more likely however, that Phil's case is dismissed without prejudice and he immediately gets to refile for Chapter 13. It's also possible, unfortunately, that his case manages to slip through the cracks and he gets his dream bankruptcy.

Whatever happens, he has stated multiple times that his main focus in this bankruptcy will be to "keep the house" and he has made it clear that if a Chapter 7 bankruptcy would lead to him having to sell the WAkhando, he would rather convert to Chapter 13. So to answer your question, regardless of what happens he will almost certainly not end up homeless. Even if the WAkhando was sold, he would still get to keep $125000 and he wouldn't have any trouble finding a place to rent.
 
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Genie The Hedgehog

Gotta Wish Fast
kiwifarms.net
Even if the WAkhando was sold, he would still get to keep $125000 and he wouldn't have any trouble finding a place to rent.
You forget that while homelessness is exceptionally optimistic, him losing the WAkhando is his ultimate nightmare. It would symbolize complete failure to lose his big adult house that even he couldn't deny with his own narcissm. So it's gonna be hilarious for us to see the meltdown.

Also, because I don't have debt to warrant such things, what exactly happens if the judge throws this whole thing out with prejudice. Like, what does the creditors devouring his carcass actually mean as far as collecting on that debt? Assuming we got the best possible outcome across the board.
 

Wing Zero

kiwifarms.net
Also, because I don't have debt to warrant such things, what exactly happens if the judge throws this whole thing out with prejudice. Like, what does the creditors devouring his carcass actually mean as far as collecting on that debt? Assuming we got the best possible outcome across the board.
I'm fairly certain it means they have full legal clearance to go take everything Phil owns and throw it up for auction to get their money back. Obviously the WA condo will be the first thing they set their sights on since it's the most valuable thing, followed up probably by most of the furnishings.
 
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Richard Harrow

kiwifarms.net
To be clear, PayPal is not a bank. The spirit of the question probably was that the PayPal account should be included, but the letter of the question allowed a stupid or malicious debtor to not list it.
Agreed. And he should have realized that though this is not considered a "bank" it is still considered an asset and is only protected by certain exemptions with a corporate name or LLC. If the account says Phil Burnell, it's considered a personal asset. Most recommend listing this in the 'financial accounts' section, assuming he hasn't pulled out a line of credit there as well, in which case, more creditor entities join the party (i.e. Paypal Credit, Bill Me Later, Synchrony Bank, etc)
 
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