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Yahoo! Entertainment reports that TanaCon organizer, Michael Weist, filed for bankruptcy after his company, Good Times Entertainment organized the failed social media convention.
What Is TanaCon?
Entrepreneur Michael Weist took on the last-minute social media convention, TanaCon, a convention hosted by popular YouTuber Tana Mongeau. Mongeau created TanaCon after the popular social media convention VidCon refused to give Mongeau a “featured creator” pass, denying her personal security to protect her from mobs of fans. Upset with how VidCon treated her, Mongeau intentionally hosted TanaCon a few minutes away from VidCon on the same weekend. Mongeau marketed her event as completely free, with additional VIP tickets convention-goers could buy as well.
Resembling the infamous Fyre Festival, TanaCon was not what it seemed and left many people angry and demanding a refund. The convention was overbooked and many convention-goers who got tickets were unable to get into the venue, standing outside in the hot sun for hours.
When looking further into the mess of a convention, fans wondered if it was Weist’s fault, Mongeau’s fault, or a combination of both their faults. Both Weist and Mongeau completely blame each other and have continued to since the event occurred.
TanaCon Aftermath
After TanaCon, both Mongeau & Weist received plenty of backlash. The failed convention was heavily reported on by the YouTube community. There were even rumors of a class-action lawsuit against Weist & his company, Good Times Entertainment. Since then, Mongeau has been able to bounce back on YouTube unlike Weist, who had his reputation completely ruined and was forced to file for Chapter 7 bankruptcy.
Recently, Weist appeared on Dr. Phil to clear his name. A few of Weist’s former employees spoke on the show in an effort to support Mongeau. They said that Weist had been a terrible boss and TanaCon had been a mess since the beginning, citing it as Weist’s fault.
In addition to all the other accusations, Weist’s former assistant has now accused him of pocketing $35,000 in funds meant for a business venture and then filing for bankruptcy before paying him back.
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The post TanaCon Organizer, Michael Weist, Files Chapter 7 Bankruptcy After Failed Convention appeared first on Allmand Law Firm, PLLC.

Supreme Court Says Being Listed as a Terrorist is ‘No harm.’ Last Friday, in a case called TransUnion v Ramirez, the Supreme Court said the Fair Credit Reporting Act cannot give you the right to sue TransUnion for putting your name on their OFAC terrorist warning list. Led by Justice Brent Kavanaugh, a 5 to […]
The post Supreme Court Says Being Listed as a Terrorist is ‘No harm.’ by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

AP News reports that every year, only a fraction of Americans that need financial help file for bankruptcy. 14% of U.S households need financial help but only 1% of them file for bankruptcy. Many wonder why these households are not getting the financial help they need. Bankruptcy attorneys have a simple explanation: bankruptcy is a taboo subject. The fear of bankruptcy, the lack of education about bankruptcy, and the fact that many individuals think that this is the start of a difficult time and not an end to one, are all reasons why people disregard the idea of bankruptcy when dealing with financial troubles.
From The Article:

“Too often, people drain retirement funds or other assets that would be protected in bankruptcy to pay debts that will ultimately be erased, she says. Putting off bankruptcy also can make it harder to come up with the $1,500 needed to file a typical case.”

Bankruptcy attorneys want Americans to know that bankruptcy is not the end of your freedom. It’s an opportunity for people to start over.
Information about bankruptcy that everyone should know:

• You won’t lose everything
• You can get credit again
• Those who have a successful bankruptcy don’t wait until the last second

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The post The Taboo Of Bankruptcy Holds Americans Back From Financial Freedom appeared first on Allmand Law Firm, PLLC.

The 8th Circuit Bankruptcy Appellate Court (BAP) has issued a new opinion baring excessive attorney fees involved in the use of bifurcated fee arrangements in Chapter 7 cases. See In re Allen, No 20-6023.
The United States Trustee, the agency that polices bankruptcy cases, objected tot he excessive attorney fees charged by William Riding in two chapter 7 cases filed in Missouri.
The attorney offered his clients two payment arrangements:

• $1,500 for a traditional chapter 7 case where all fees are paid before the case is filed.
• $2,000 fee payable in 12 monthly installments after the case was filed.

Both debtors chose second option to pay fees after the case was filed.
BANKRUPTCY LOANS: FRESH START FUNDING LLC.
In both cases the attorney used a company called Fresh Start Funding LLC to finance the case. Under the Fresh Start program the attorney was paid $1,500 for each case and he sold his unpaid receivable to Fresh Start to collect from the debtor in monthly payments.  Fresh Start would earn $500 for financing each case over 12 months.
Essentially, the debtor is taking out a $1,500 loan with an effective interest rate of 57%.
REASONABLENES OF ATTORNEY FEES
The bankruptcy court found that both chapter 7 cases were relatively simple and routine. No complex issues were involved and both debtors received a discharge of their debts.
Since the attorney performed the exact same duties in these bifurcated fee arrangement cases as are performed in a traditional pay-upfront case, the court deemed the extra $500 charge excessive. The Bankruptcy Appellate Panel agreed and denied the extra $500 finance charge but allowed the attorney to be paid the standard $1,500 fee.
THE GLARING FRAUD NOT ADDRESSED BY THE COURT: THE AUTOMATIC STAY VIOLATION
What completely amazes me about this opinion is why the court did not address the obvious fraud this fee arrangement involved:

On May 21, 2020, Mr. Ridings filed a chapter 7 petition and creditor matrix on behalf of Mr. Allen. The schedules, statement of financial affairs, and disclosure of attorney’s fees were filed forty-four minutes later. Mr. Allen received his discharge September 23, 2020.

Forty-four minutes later!!  The Schedules, Statement of Financial Affairs, and the Means Test were filed forty-four minutes later??
What this means is that all of these forms were actually prepared BEFORE the case was filed. This fee arrangement in the Allen case was clearly a fraud.
The entire concept of a bifurcated fee arrangement is that this work is prepared  AFTER the case is filed. That is why attorneys, in theory, are allowed to be paid after the bankruptcy is filed.  Attorneys are allowed to collect post-petition payments because the bulk of the legal work is supposedly performed after the case is filed. But in this case ALL the work was obviously prepared before the case is filed since it was filed only 44 minutes later.

Why should this attorney be allowed to collect a dime for services that were clearly prepared pre-petition?

Why did the 8th BAP not discuss this obvious fraud and automatic stay violation? Why should this attorney be allowed to collect a dime for services that were clearly prepared pre-petition?  How is this not a violation of the bankruptcy stay that prohibits the collection of payments for services rendered pre-petition?
MESSAGE TO FRESH START FUNDING: YOU WILL NOT BE PAID, GO AWAY
The message to Fresh Start Funding and other bankruptcy fee lenders is clear: You will not be paid in the 8th Circuit (which includes Nebraska, Iowa, Missouri, South Dakota, North Dakota, Minnesota, Arkansas and Oklahoma bankruptcy courts.)
In these cases the debtor got what they needed–an affordable payment plan to file bankruptcy. The debtor’s attorney got paid $1,500 which is his standard fee. But Fresh Start Funding will not be allowed to collect the $500 financing fee.  In other words, get lost, you won’t be paid in the 8th Circuit.
A case is pending in the Nebraska bankruptcy court on this exact issue, and it is now abundantly clear how the Court will rule.
 
Image courtesy of Flickr and Rachel Kramer Bussel