Bankruptcy: Errors & Omissions I – Assets

Updated April 23, 2012

Jennifer McKinney and Israel McKinney filed for Chapter 7 bankruptcy in Minnesota bankruptcy court on December 13, 2011; the case is 11-61215. Since then a number of errors and omissions in their bankruptcy filing have come to light, as detailed below. These omissions are significant enough to warrant additional scrutiny on the part of the U.S. Trustee’s office in Minneapolis, Minnesota.

Assets
All assets at the time of filing must be disclosed. However a number of assets are noticeably absent from the McKinney’s bankruptcy filing.

Schedule B – Personal Property
2. Checking, savings or other financial accounts.
PayPal Bank account (www.paypal.com)
      registered to the e-mail address contact.mckmama@gmail.com

PayPal Bank account (www.paypal.com)
      registered to the e-mail address the7mckinneys@gmail.com

PayPal Bank account (www.paypal.com)
      registered to the e-mail address JenniferMcKinneyPhotography@gmail.com

PayPal Bank account (www.paypal.com)
      registered to the e-mail address JenniferHMcKinney@gmail.com

PayPal Bank account (www.paypal.com)
      registered to the e-mail address MckMama77@gmail.com

The first PayPal account (contact.mckmama) is the account into which Jennifer McKinney receives the vast majority of her income for photoshoots, photo workshops, online photo classes and wedding shoots, as well as any number of other business dealings such as small business ads and affiliate advertising revenues. It is a bank account and should have been listed. A PayPal account can be used to send and receive money, with balances able to be transferred into another checking account, transferred to a PayPal debit card, or held in the PayPal account and used to make payments to merchants that accept PayPal as a form of payment.

The second PayPal account (the7mckinneys) is linked to an e-mail address uncovered recently as a personal e-mail address used by Jennifer McKinney. This e-mail address was also used to register the domain www.MckHealthy.com. PayPal identifies this e-mail address as a Personal Member.

The third PayPal account (JenniferMcKinneyPhotography) is linked to the Jennifer McKinney Photography business e-mail address. This e-mail address is still linked to a PayPal account per their website.

The fourth PayPal account (JenniferHMcKinney) is linked to an older e-mail address that Jennifer has used before. This e-mail address is still linked to a PayPal account per their website.

The fifth PayPal account (MckMama77) is linked to an unverified e-mail address that is possibly utilized by Jennifer; mckmama77 is her WordPress user ID.

8.Firearms and sports, photographic, and other hobby equipment.
Trade Tools – Canon Rebel xTi
A comment made on 11/16/2011 mentions this third camera, but it is not disclosed in the bankruptcy filing.

25. Automobiles, trucks, trailers and other vehicles and accessories.
Trailer: 10′ travel trailer, 2 wheel; currently used as an ice house.
Estimated value: $300 – $500

35. Other personal property of any kind not already listed.
Domain: JenniferMcKinneyPhotography.com *
Domain: MyCharmingKids.net
Domain: MckMama.com
Domain: MyCharmingKids.net/deals
Domain: MckHealthy.com *
Domain: bludomain21.com/~jenni/

Depending on traffic statistics domains can be very valuable assets, worth considerably more than the $10 per year it costs to renew them. Entities will often buy an expired domain with high traffic history and use it to redirect elsewhere or fill it with advertising until the traffic eventually dies down and it is no longer profitable. Jennifer herself stated in February 2012 that her blog receives approximately 250,000 page views in a week. Multiple estimates obtained list the domain value between $30,000 – $45,000, however a more accurate amount would be obtained via a domain auction.

* The domain JenniferMcKinneyPhotography.com was not renewed when it expired during the first quarter of 2012; however it should have been listed in the bankruptcy documents filed on December 13, 2011.

* The domain MckHealthy.com is a new domain that was registered on February 21, 2012. It is currently used as a URL that redirects to Jennifer McKinney’s MLM distributor page with Xyngular.

* The domain at bluedomain21 is the site that holds her photography website content. This site was paid for and started in early 2008 to hold the content of the photography website, later visible at JenniferMcKinneyPhotography.com.

 
 
Part II: Income will be published shortly.

Comments are closed.