Kiwi Farms

(added by actually on Feb 2, 2020)

@SoapQueen1 has made an LLP thread specifically for this, so go there to read about the legal implications of the bankruptcy. This thread will just be for information about the
submitted documents and any subsequent changes. Not sure what will happen with the FAQ.


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

Accuracy of Monthly Income Estimations

@SoapQueen1's 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 that, as far as I know:

• trustee commissions (something similar to 25% of the first $5K of non-exempt equity, 10% of the next $50K, and 5% of the remainder): $17,450
• realtor commissions (they claim 9% of the sale price): $36,360
• amount owed on the mortgage: $227,000

leaving him with $123,190 of equity, all of which is exempt as it is barely below $125K. It seems to me his attorney is desperately trying to prevent this condo from being sold during the bankruptcy. Here's the issue with that: They're already lying about how much Zillow estimates it's worth which reduces their credibility and all it takes is the trustee, judge, or one of his 16 creditors to demand an actual appraisal. If it's worth more, and it probably is considering other units in his gated community have sold for more in the past 6-7 months, he will begin to have non-exempt equity. One source indicates his home is actually worth up to $456K which would leave him with $42,910 in non-exempt equity and result in the trustee selling his condo.

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.