Mommy Blogger McKMama's Bankruptcy Problems

[ValleYum]

Ironic.

It's like a black fly in your chardonnay!!

Too funny!! <3

[BankruptinNJ]

I'm not sure what the deal is with their attorney. After the 341, when it became quite clear that they had under reported income, everybody expected the amended docs to update the income to what it actually is. But that didn't happen.

As to the value of her blogs...it's hard to say. There are some who think they are worth thousands and some who think otherwise. She's already working on a new blog, yet to be revealed. If you look at her FB, it's clear that she still has hundreds of supporters. But, her supporters seem to be like a revolving door. They realize what she truly is (a scam artist) and leave, but then she is able to quickly replace them. She is quite capable of quickly rebranding herself. In the past year, she has been a crunchy granola homeschooling mommy living in a half million dollar home. Then she was an RVing, photographing, junk-food eating mommy living on the road full-time. Then they ditched the MckMansion and became goat-farming, chicken-raising poor homeschoolers making homemade yogurt. Then she became the weight-loss, exercising, farming, natural eating, homeschooling mommy. Then she started with the weight-loss supplements and is now a weight-loss guru, kids are in public school and she's on her way to a divorce. Oh, and they are renting another semi-glamor home.

All of this in one year!

So she cycles through readers pretty quickly. But, she also has a lot, a LOT of readers that support her no matter what. Kind of cult-like.

I pay about $10.00 a year on each of my domain names. Apparently, when MckMama forgot to renew her domain last year (or didn't pay her webhosting bill, accounts vary), the name was immediately put up for auction and listed at $22,950! Probably because it gets lots of visits each month. She must have bought it back, though, because her blog still uses that domain name.

[jazzladyw]

Wow! I just listened to their 341 meeting. Holy cow. lol Talk about backtracking and changing their answers/tune. Very interesting listening. I thank god that mine went smoothly and lasted barely 5-10 minutes. Of course, I wasn't trying to hide anything either.

[mslaw]

So what did she claim to make and what did she actually make? I cannot go through that 341 meeting but now my curiousity is piqued.

[oregonpilot]

wowwie..i just read the transcripts. All I can say is .....I'm speechless.
I liked where the TT asked her a question and she said ..What?? I wasn't listening.

[jst4f]

So what did she claim to make and what did she actually make? I cannot go through that 341 meeting but now my curiousity is piqued.

I believe that she is stilling claiming $55K earnings compared to about $150K believed to be the actual income. Valleyum has a link on page 2 of this thread to a good summary.

[mslaw]

I believe that she is stilling claiming $55K earnings compared to about $150K believed to be the actual income. Valleyum has a link on page 2 of this thread to a good summary.

Wow crazy. Thanks!

[TomTea31]

My theory is that since she does not like paying her creditors or landlords or anyone else, she probably thought that by declaring bankruptcy she could get away with not paying them. She seems to feel very entitled.

Did she declare Chapter 7 or Chapter 13?

Also, her income would certainly put her over the means test, wouldn't it?

She just neglected to mention way too much information for it to be an accident.

I wish that I could make that much money blogging, too! But I blog mostly for fun.

I don't think it was an accident. I think it was completely intentional and she knew 100% what she was doing. I think she thought she could get away with and that the extra traffic she'd get from being exposed would make her even richer and she'd get to keep that to. I do not think she realized or maybe she just didn't care that she'd be in deep dog do form this.

[ValleYum]

The Scheduling Order was filed for MckMama's AP on Friday.

Link to a copy the order is via the MWOP Blog page: http://mwopblog.com/wp-content/uploa...ptcy_Doc_5.pdf

[Sweetpea3829]

What's it all mean? Is this a trial for the alleged bk fraud?

[despritfreya]

What's it all mean? Is this a trial for the alleged bk fraud?

It means nothing. Standard stuff depending upon local rules and/or a particular judge’s procedures. In this case it appears that the judge’s procedure is to issue a standard Scheduling Order once an Answer to a Complaint filed. Either the parties will settle (most likely outcome) or they won't and a trial will be held sometime after October 9th.

Des.

[Sweetpea3829]

So this is standard for all bankruptcies depending on local rules and procedures? It has nothing to do with the alleged fraud, etc.?

[despritfreya]

So this is standard for all bankruptcies depending on local rules and procedures? It has nothing to do with the alleged fraud, etc.?

This is normal procedure for an Adversary Proceeding. A Complaint was filed against the debtors, alleging fraud etc. They answered the Complaint and the judge issued the Scheduling Order. Like any debtor, these debtors will defend their right to a discharge either by settling with the trustee or taking the issue to trial sometime after October 9th. In the mean time, the entry of the discharge will be delayed pending the outcome of this litigation.

Des.

[despritfreya]

UPDATE for anyone following:

Debtors have agreed to waive their discharge and cannot re-file for at least 1 year. This is a win for them. If they were officially denied a discharge through the Adversary Proceeding, with findings of fact and conclusions of law by a judge, they would never have the chance of discharging the debt that was part of this bk in any subsequent bk. A trial in the AP is set for November 2, 2012 but, as the agreement/Order to waive the discharge was entered recently, I suspect the trial will be vacated.

Here is the Court Order:

UNITED STATES BANKRUPTCY COURT DISTRICT OF MINNESOTA
In re Israel R. McKinney Case No. 11-61215
Jennifer H. McKinney Chapter 7

ORDER

The application for approval of the waiver of the debtors’ discharge came before the court. Based on the application,

IT IS HEREBY ORDERED:

1. The debtors’ waiver of their chapter 7 discharge is approved.
2. The debtors, Israel R. McKinney and Jennifer H. McKinney, are not entitled to a discharge under 11 U.S.C. § 727 in this bankruptcy case.
3. The debtors, Israel R. McKinney and Jennifer H. McKinney, shall not file another bankruptcy petition for one year from the date of this order.

Dated: October 10, 2012

Dennis D. O’Brien
United States Bankruptcy Judge

Des.

[tobee43]

thanks des, really this is actually a very interesting case.