Philip P. Burnell (20-10323) -

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SoapQueen1

speed bump, failed business, retired tism wrangler
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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 the median income in their state for a household of their size (yes, his wife's income is counted) can have their unsecured (credit cards, personal loans, etc) non-priority (not taxes, not child support, not student loans) debt discharged fairly quickly compared to the years or lifetimes it would normally take to pay them pay off. The catch is that the debtor has to sell their non-exempt assets first. There are federal and state rules about what assets are exempt and the debtor can chose which set of rules to use but cannot cherry-pick individual rules out of the sets. DSP is using the exemptions for the state of Washington. These exemptions can be found here and include the following: $125K equity in a primary residence and $3,250 equity in a vehicle or $6,500 equity in two vehicles for a married couple.

The first glaring issue with DSP's filing is that he identifies approximately $16K equity in his vehicle and somehow wants to engage in an agreement to keep it. My understanding is that he is required to allow the trustee to sell it because he has too much equity in it. The second issue is the lowball estimate of his Washington condo's value. The filing indicates Zillow estimates its value at $379K but Zillow hasn't estimated its value at that amount since four years ago in January 2016 and its value has continued to increase since then. Zillow currently estimates it's worth $410K, and both Redfin and Realtor.com suggest a similar unit in his gated community is worth $413-414K minimum. Realtor.com even goes so far as to say it could be worth up to $456K. Several similar units in DSP's gated community have sold for between $385K and $555K in the last half of 2019. Not only is this sloppy work in the filing it's a material misrepresentation because it affects whether or not his condo must be sold under Chapter 7.

Assuming it sells for $410K, he can deduct the following from that sale price to determine what amount of that value is non-exempt:
  • the homestead exemption: $125K
  • trustee commissions: $17,500
  • realtor commissions (the filing claims it will be 9% of the sale price): $36,900
  • amount owed on the mortgage: $227K
leaving him with $128,600 equity. This means he has a small amount ($3,600) of equity that is not exempt which may require the trustee to sell his home and may not. Keep in mind the trustee and realtor commission listed here are not guarantees and if they are actually lower he will have even more non-exempt equity. If his condo is actually worth more he will have even more non-exempt equity. The trustee has a vested interest in finding as much stuff to sell as possible because the sale commissions is most of how they get paid.

The third issue is a mysterious claim of $5,200 in average monthly business expenses. DSP is an extremely low production-value Twitch streamer and only uploads 1 hour chunks of his raw stream archives to YouTube. I cannot fathom how he spends more than a tenth of that number each month on ordinary and necessary business expenses. It's highly likely he is classifying the entirety of his personal income taxes, his Washington condo expenses as business expenses which is at worst bankruptcy fraud and perjury. If he's claiming these things are business expenses to the court and not the IRS the court will almost certainly find out and his petition could be denied with prejudice meaning he cannot try again for years.

There are a number of other issues with the filing including DSP stating he doesn't run or own a business (including a sole proprietorship) when he later identifies income from and expenses for a business he runs, not identifying where he and Kat live for some reason writing "- NONE -" for the state and leaving the address blank, claiming he owns no electronics, claiming he owns no collectibles, etc.

DSP claims he has $600 in cash and $460 in checking at the date of filing. A summary of the fully unsecured debt DSP has at the time of filing follows:
  • $15K to the IRS from 2018 back taxes
  • $7,550 to American Express across two accounts
  • $26,038 to Bank of America
  • $2,741 to BMW (somehow after ending his lease in mid 2017)
  • $10,751 to Capital One
  • $14,100 to Chase
  • $37,994.74 to Citi across three accounts
  • $10,053 to Discover
  • $9,397 to a peer-to-peer lending group called Lending Club
  • $4,355 to a peer-to-peer lending group called Proper Marketplace
  • $3,819 to Sam's Club
  • $4,751.54 to to US Bank
for a total of $146,550.28 of unsecured debt, $15K of which is to the IRS. DSP also still owes $227,448 on his Washington condo mortgage, $14,328 on his 2017 Toyota Corolla, and $105,890 on his Connecticut mortgage. The Washington condo and Toyota fully secure the debt attached to them. The Connecticut condo does not and approximately $46K of it is unsecured.

DSP's filing demonstrates that the efforts to tally up his monthly income have been extremely accurate despite him calling people mentally ill stalkers who are completely wrong.

MonthIncome EstimationDSP's Reported Income
July 2019$8,088.80 - $9,776.80$8,219.30
August 2019$10,900.83 - $12,628.83$10,104.07
September 2019$8,065.21 - $9,589.21$8,222.24
October 2019$9,876.88 - $11,428.88$9,864.26
November 2019$8,707.72 - $10,363.72$9,768.23
December 2019$9,273.65 - $10,937.65$9,229.10
 

Attachments

SoapQueen1

speed bump, failed business, retired tism wrangler
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Answers to some questions people have asked follow:

Q: How much has Phil given to charity in the last 2 years?
A: Less than $600 to any individual charity, and probably $0.

Q: If Phil really lied on his submitted documents, can the lawyer get in trouble for signing off on it?
A: Unless someone can prove the lawyer knowingly lied about or encouraged Phil to lie about something in the documents, they're unlikely to face any serious repercussions. Clients lie to lawyers all the time.

Q: If Phil really lied on his submitted documents, what trouble can he get in to?
A: https://www.nolo.com/legal-encyclopedia/bankruptcy-fraud-consequences.html

Q: How is Kat affected by this?
A: In name, Kat is not on the hook for any debt Phil had from before their marriage. Anything after they were married would carry, in name, joint responsibility. However, since her money is legally her husband's money too DSP has to disclose her savings to satisfy the requirements of Chapter 7. He also has to use it to pay off his debt if the two own too much in cash, savings, checking, stocks, and bonds.

Q: What is bankruptcy exactly?
A: When you file for bankruptcy the people you owe money to (creditors) can no longer bother you about your debt as long as you continue to qualify for a stay (hold) on collection efforts. You generally either file under Chapter 7 which means you have lower income or assets than the limits and your debt just goes away. Sometimes you have to sell some of your assets or pay with part of your savings because you're only allowed to keep a very small amount of stuff which varies by state. You can use either the state or federal rules depending on which is best in your individual situation. If you file under another chapter like 13 you end up paying off your debt with all of the money you're able to put toward it for 3-5 years after which your debt just goes away like in Chapter 7. If your bankruptcy is dismissed because you fuck up the stay goes away and creditors are likely to come in like vultures to pick you clean.

Q: Does DSP own a business?
A: Yes, he is a sole proprietor with a fictitious or trade name. No different than you calling yourself The Horse Whipserer even though you're not an LLC or a corporation. There is no separation between his business and he legally. One's joys are the other's joys, one's sorrows are the other's sorrows.

Q: Is the attorney obligated to disclose information in the filings is wrong if she finds out?
A: It's always in the best interest of your client to say "Hey we messed something up and here's the correction," rather than letting the court find out your client you lied. Since attorneys have an obligation to act in the best interests of their client, yes the attorney is obligated to disclose there was an issue with the filing that needs corrected. Worst case the attorney may just wash their hands of the client and quit if the client won't stop lying to them and the court.

Q: Could DSP get his stuff taken away?
A: He could lose the condos and the car. As far as we know nothing else is being used as collateral.

Q: Will he have to sell the condo or car if he files under Chapter 13?
A: No, but then he'll have to pay way more money over the course of five years.

Q: If DSP doesn't qualify for Chapter 7 can he turn around and file for Chapter 13?
A: Probably not, but he can request the court convert his existing Chapter 7 filing to Chapter 13 as long as he hasn't completely pissed them off.

Q: Can creditors force DSP to file under Chapter 13 instead of Chapter 7 so they get more money?
A: The court can force it if it's discovered he fucked up his means test paperwork and doesn't qualify for Chapter 7.

Q: Does being married affect his bankruptcy?
A: Yes, now Kat's income and any savings she generates from her job has to get used to pay off his debt. It makes it harder for him to qualify under Chapter 7 and increases the amount he has to pay under a potential Chapter 13 filing.
 
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mindlessobserver

kiwifarms.net
Nice work. Gonna be curious to see if his filings stand up in court. I would say no, but stranger things have happened. His big issue is owing more then 10,000 dollars to both Chase AND Bank of America. Those guys wont let that bone go without a fight. Ditto for the IRS. The IRS alone would initiate an audit on this shit pile. Add in two very aggressive banks? Yeah they are gonna pay someone to look this over.
 
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marlintan

kiwifarms.net
What fresh hell is this?

Phil gay-ops'ing himself, 2020 is gonna be wild... cats sleeping with dogs and all that
 

Local Coyote

Hey man, got any cats?
kiwifarms.net
I am not up on my DSP lore but this got my attention because it's hilarious.

What happens if he doesn't continue paying off any debts that are not discharged after either Chapter 7 or 13? I'm assuming outstanding creditors can sue but would it be worth it for them?
 

mindlessobserver

kiwifarms.net
I am not up on my DSP lore but this got my attention because it's hilarious.

What happens if he doesn't continue paying off any debts that are not discharged after either Chapter 7 or 13? I'm assuming outstanding creditors can sue but would it be worth it for them?
They can put a garnishment order on all his income.
 

AnOminous

Really?
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They can put a garnishment order on all his income.
Not quite. If you're employed they can order your employer to garnish a portion of your paycheck. You can't really do that with a bank. You can try collecting on a bank account and hope there's money in it, but you can't impose an ongoing obligation on the bank to do anything in the future and obviously if the debtor is being evasive, they wouldn't put any more money in there anyway.
 
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DragoonSierra

kiwifarms.net
Not quite. If you're employed they can order your employer to garnish a portion of your paycheck. You can't really do that with a bank. You can try collecting on a bank account and hope there's money in it, but you can't impose an ongoing obligation on the bank to do anything in the future and obviously if the debtor is being evasive, they wouldn't put any more money in there anyway.
Can they order twitch to take money out of what they pay him? I know we had a discussion about Chris and paypal about what it takes for paypal to notify the IRS. phil definitlely meets that criteria. Can paypal be garnished?

His attorney amended the filing to include his PayPal account. Dude has made like $1500 in the past three days and there's only $500 or so in it.
link?
 

SoapQueen1

speed bump, failed business, retired tism wrangler
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Can they order twitch to take money out of what they pay him? I know we had a discussion about Chris and paypal about what it takes for paypal to notify the IRS. phil definitlely meets that criteria. Can paypal be garnished?
They would have to go ask PayPal for money over and over again individual times, unlike an employer where they could impose a long term obligation.
It's the last document in the OP.
 

mindlessobserver

kiwifarms.net

I can't imagine

kiwifarms.net
Gonna have to press X on that one. The 55 gallon drum of lube is nearly 2000 dollars atm.

I'd ask why someone would need that much lube, but I'm pretty sure I don't want the answer.

Back to the $1000, though. If he was sufficiently weasel-like, he could be trying to stash money in prepaid debit cards. Technically they can be levied against, but it's a lot harder to do it.
 

millais

The Yellow Rose of Victoria, Texas
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I wonder what he spent 1000 dollars on
Part of it probably went to the WWE mobile game. The people tracking his activity in the game have found that on his account, he had a Valentine's Day exclusive in-game item you can only get by paying copious amounts of real money.
 
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