Mommy Blogger McKMama's Bankruptcy Problems

[Sweetpea3829]

There is a BK case I am following...without giving too much identifying information away (although it IS playing out in the public arena), it's a BK7 filed by a married couple and it appears as though they have purposefully witheld income and assets from the trustee. Actually, quite a bit of income and assets.

The audio and transcripts from their 341 meeting was made available recently. At 1 1/2 hours long, it was quite the meeting, and the trustee was not pleased.

A day or so ago, the trustee filed an application with the court requesting approval of employment of attorney.

The trustee is seeking approval for HIM to be the attorney, and the reason he is seeking an attorney in this particular case is noted as such: Applicant believes that the employment of an attorney is necessary to represent or assist trustee in carrying out the trustee’s duties as follows: Object to the debtors’ claim of exemptions, pursue turnover of property and to otherwise represent the bankruptcy.

1) What does this mean for the case? Are these folks looking at charges here? Or is this a formality?

2) Is there a conflict of interest with a trustee seeking to be the attorney of representation in the middle of this particular case?

Thoughts?

[ValleYum]

The blogger one? I can not believe that one!

[tobee43]

from what i understand trustees can and will hire "special" council to assist them whenever they feel like it! it may be that they need the council to go after someone that owes the couple money, or some other example of finding or needing legal assistance in recovery of a possible asset.

i know a chapter 7 that it has been going on 7 years with a a "special" council assigned by the trustee seeking over 1.9 million in a law suit that was pending the debtor, it's still no where and that poor person still has an open chapter 7.

[Sweetpea3829]

Valle, yep, that's the one. Has this case been talked about on here? I haven't visited bkforum in some time.

Tobee! How are you! Long time no see! This particular case is ridiculous. The debtors make a lot, a LOT of money but hid most of it.

[tobee43]

Valle, yep, that's the one. Has this case been talked about on here? I haven't visited bkforum in some time.

Tobee! How are you! Long time no see! This particular case is ridiculous. The debtors make a lot, a LOT of money but hid most of it.

nice to C you to Sweetpea!!!!...really sounds crazy!!! it's amazing what money buys you, even during a bk...right?

[despritfreya]

The blogger one? I can not believe that one!

Ok, so what is "the blogger one"? I do not like to be kept in the dark.

Des.

[AngelinaCat]

Ok, so what is "the blogger one"? I do not like to be kept in the dark.

Des.

Same here.....

[ValleYum]

A mommy blogger known as McKmama filed a BK in December. She had lots of fans and lots of enemies in the blogosphere. She also appeared to manufacture/embellish info for her blog. She mentioned having to file BK in a blog or Tweet (not sure here) and of course people searched PACER for her petition. The enemies noticed discrepancies in what McKmama had blogged about owning/doing/earning and what was listed on her BK Petition and en masse they contacted the Trustee in the case as well as notifying the UST listed on her petition.

Her BK has been a cluster. She failed to list many assets and income from her blogging ads (BTW nice money if you can make it). The transcripts of her secondary meeting of creditors was just posted like Sweetpea mentioned on a website called Mckmama Without Pity (you can see the BK info listed on the sidebar along with all the reasons these people detest McKmama). http://mwopblog.com/

Sweetpea - I can't remember where I heard about it - I blog hop during my insomnia periods at night.

Anyhoo, it is a matter of public record (right?) so for the PACER fanatics: District of Minnesota Bankruptcy Petition #11-61215 NOTE TO MODS: Feel free to delete the BK number if you deem inappropriate.

[despritfreya]

it is a matter of public record

Will check it out this weekend. Could be fun. Thanks for the PMs too.

Des.

[Sweetpea3829]

LOL, well, I was trying to hide her identity. At least somewhat. But yes, Valle is correct.

The blogger in question foreclosed on two homes...saving the payments on both homes in order to have a large down payment for their glamour home that they just walked away from (a contract for deed).

The blogger in question owes a previous employee over 50k in income. And 5k to a roofing supply company. And thousands more in IRS back taxes. And thousands more in medical bills (because even while making well over 100k a year, they saw fit to NOT buy insurance).

The blogger in question did a message with Focus on the Family about how to be financially healthy...or something like that. And in the meantime, they were racking up debt, refusing to use their rather large income to pay that debt and traveling all over the world.

The blogger in question appears to be in very big trouble with the bankruptcy court. Like...orange jumpsuit trouble. Maybe. Right now, the trustee has applied to be the representing attorney for the bankruptcy estate and appears to be going after assets. One of those assets is a third vehicle the petitioners had bought and then transferred to her sister, without transferring the title and registration.

All of the information, including background info and bk documents, can be found at www.mwopblog.com Just a note, the comments section can be quite nitpicky to read through. Some folks are a bit fanatical in their dislike of the blogger. But most of the folks there are level-headed people and they have done a bang-up job researching this case.

[despritfreya]

Sweetpea,

Sounds like a case I am following in my district. Lady ran a Ponzi scheme and has transferred all assets off shore or to “friends”. She too is rather “high profile”. My guess is that she will be going to Club Fed at some point for bk fraud.

Des.

[ValleYum]

I am sorry, sweetpea. LOL pm-ing the info never crossed my mind. My intent was not malicious.

Reading the transcripts it seems almost like they threw a dart at a calendar to pick their filing date and kept rolling merrily along depositing random checks into bank accounts here and there and traveling to photograph a wedding while Paypal was getting $$ from blogger activity. Seems like she used her Paypal as a sort of "sweep account" rather than a place that hid money - but she sure should have disclosed them (plural).

I feel sorry for their BK attorney and their 5 kids.

[Sweetpea3829]

Hah, not malice noted. :-)

Theirs is like a 100 level course on how NOT to file bankruptcy. Having followed this blogger as long as I have, and having seen her intent with other things, I feel pretty certain their omissions and transfers of assets were intentional. There's a LOT to dig through, and some outright blatant lies she told the trustee. If he catches on, they're in big trouble.

[Sweetpea3829]

And can I add...I would like to make 100k a year blogging...and to think, she's not even that well known of a blogger. She's much smaller than, say, Pioneer Woman, or even Kelle Hampton. She could have been big, but when you lie and cheat and ban people constantly from you're blog...well, it leaves a sour taste for most readers.

[papie]

I've been following this blogger off and on for years. I was wondering if anyone on BkForum had been following, I guess so!

I've given her the side-eye for a long time and I assumed her bankruptcy filing would be shady, but I didn't really it would be THAT shady. I don't know how many times she had posted on her blog about how they got their finances in order and paid taxes and all that jazz. Then it's revealed that she rakes in over $20k per month, and doesn't pay anything, and even stiffed their poor landlord with months of electric and gas bills....all while accepting freebies and handouts from her followers.

I'll be interested to see how it turns out, being as she already told the trustee her websites aren't his to sell. It should be...interesting in a really sad way.