My rationale for the explanation of the $5,000/mo expenses is that he was essentially using some kind of Enron-style accounting fuckery where he was including his personal expenses into his business expenses while re-adding the same business expenses into his personal. Let me try to elaborate:
For Philbert’s business expenses to ever be as high as that magical $5,000 number, he had to add his personal living expenses as part of his business expenses. So, for example, if you were to add his mortgage, car payment, internet bills, electricity and water bill, and every other expense you could think that would be for personal use, he could bouflay up his business expenses to that $5,000 amount. And you know what? Technically he can, given that he has a passthrough single proprietorship company that he is operating out of his home. Short of an audit, DSP’s tax guy can get extremely creative when it comes to filing his taxes because it then becomes extremely difficult to prove what was used for business use and personal use since he conducts his business out of his home.
Where it gets fraudulent is here: in justifying his personal expenses to arrive at that ridiculous $9,900 number he had that month where he was -$39 in net income (remember on his filing, there was one month his expenses were so high, it drove his average into the ground where it made him magically qualify right below the threshold for Chapter 7), I believe that Phil re-added all of the expenses defined as “business expenses” into “personal expenses.” He basically is saying the following: “so, yes, my mortgage is a business expense since I have to pay it in order to conduct my streaming and on-demand begging video services but it is also a personal expense since my home also has sections that are for personal use only.”
That’s the only way these $5,000/mo expenses make any sense. Bottom line is: Phil really shouldn’t use his bankruptcy as vindication for anything because his filing is public and the document is nothing short of disingenuous, skirting close enough to being fraudulent. It doesn’t vindicate him any way, just reinforces the fact that he’s a complete scumbag who will go to great lengths to obfuscate everything and anything when it comes to his personal finances because he has something to hide.