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Betty The Restauranteur

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  • #31
    Out of all the things Betty has done wrong, the employee checks bouncing makes me the crankiest. My parents have successfully run several small business for more than 25 years. When things were slow, they did whatever they had to in order to make sure their workers got paid. Not anything illegal, of course, but maybe they had to choose between paying the guys and paying a supplier. Well, they'd call the supplier and work something out to make a partial payment or push the date a little. Not a great solution, but they had good enough relationships with the suppliers so that nothing got send to collections, and the company stayed afloat. And when things got better they paid those suppliers early, as much as possible.

    Anyway, I'm surprised Betty manages to keep a decent cook and staff. Most would cut and run when a paycheck bounces.
    Replace anger management with stupidity management.

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    • #32
      She has been avoiding paycheck bouncies by cashing them out of the till. As an eminent economist (Herbert Stein, but don't hold me to that) once quippped: Anything that can't go on, won't--sooner or later.
      I'm trying to see things from your point of view, but I can't get my head that far up my keister!

      Who is John Galt?
      -Ayn Rand, Atlas Shrugged

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      • #33
        Betty's husband finally came in yesterday to sign the extension document. I gave him a copy of the letter stating the things we'd need before January to renew the loan again: proof of insurance on the house and completed tax returns through 2013. He said insurance would be no problem, but that the tax returns won't show him having any income, anyway. I explained that would make it very difficult for us to support the loan. We need to show that they're able to actually repay the loan. He went over some things that he might be able to do to show some income (such as sell some of his cattle, which I didn't even know he had), but he's not going to do that because he doesn't want to show a profit.

        I get that he wants to do that for tax purposes, but it makes it really difficult for us to support the loan. Being a balloon renewal, we're kind of stuck. We either renew the loan and have a headache for another five years, or we activate the acceleration clause and force them to get a loan with another bank - which they probably won't be able to do because they can't show any income. And when they can't get a loan elsewhere, we'll have to foreclose. So no matter how you look at it, the situation sucks.

        I also talked to him about the past due real estate taxes on the restaurant. I explained (since most folks don't understand this) that personally-owned real estate is automatically owned by one's spouse in MN, so if the restaurant goes tax forfeit, it will affect him, too. And it will go tax forfeit next year, if $6,000 worth of real estate taxes aren't paid to the county. He expressed surprise and said he had no idea. He said he would talk with Betty that night about it. I expect that was quite an argument.

        Anyway, Betty's husband signed the extension document and I was able to put it on the mainframe. Now we wait and see if they get the things done that we need before the middle of January.
        "I look at the stars. It's a clear night and the Milky Way seems so near. That's where I'll be going soon. "We are all star stuff." I suddenly remember Delenn's line from Joe's script. Not a bad prospect. I am not afraid. In the meantime, let me close my eyes and sense the beauty around me. And take that breath under the dark sky full of stars. Breathe in. Breathe out. That's all."
        -Mira Furlan

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        • #34
          It very much sounds like you are going to end up forclosing eventually, no matter what. Just choose now or later...
          Life: Reality TV for deities. - dalesys

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          • #35
            Quoth mhkohne View Post
            It very much sounds like you are going to end up forclosing eventually, no matter what. Just choose now or later...
            I agree, you have no good choices here...

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            • #36
              Quoth mhkohne View Post
              It very much sounds like you are going to end up forclosing eventually, no matter what. Just choose now or later...
              People do this to themselves. Early on, before they are in a deep hole they could choose to take action to stop this. IE have less employees and work harder yourself, negotiate better deals on supplies, talk to an accountant, close the business, sell the business, get a second job so you have more money.

              This should be given to every child as soon as they are old enough to understand it, and they should be made to re-read it as they come to points in their life when they need to make decisions about money.

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              • #37
                Betty's Hubs is trying to have it both ways. He wants the bank to take a risk by giving him a loan, but he doesn't want to show income to support the loan so he doesn't have to pay taxes to Uncle Sam. He's probably yearning for the bad old days of liar loans when that sort of thing was actually encouraged.

                He's a bottom feeder. He doesn't want to contribute his fair share to society (pay taxes), but he wants the gravy of easy credit.

                Now I'm all for taking advantage of tax deductions one genuinely qualifies for. But this guy sounds like he's hiding income so he doesn't have to report it. That's leaving me pissed off

                Bank should foreclose on him.
                They say that God only gives us what we can handle. Apparently, God thinks I'm a bad ass.

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                • #38
                  What a pair of incompetent jerks. I'll bet they're so deep in the hole they wouldn't have enough to cover the tax liens if they sold all of their assets.

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                  • #39
                    It boggles me that people think that banks will give out a loan when they are PURPOSEFULLY showing no income. Why should the bank believe that you will pay the loan back? That's what is the purpose of banks giving out loans, after all.

                    Give $5,000 loan, get the loan paid back over time with interest, thus making profit for the bank. If you have NO WAY TO PROOVE that you have money coming in to you consistently that will let you pay back said loan, bank will not GIVE said loan.
                    My Writing Blog -Updated 05/06/2013
                    It's so I can get ideas out of my head, I decided to put it in a blog in case people are bored or are curious as to the (many) things in progress.

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                    • #40
                      There's a nugget of truth behind the saying "Banks only lend money to people who don't need it".
                      Any fool can piss on the floor. It takes a talented SC to shit on the ceiling.

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                      • #41
                        Quoth Sapphire Silk View Post
                        Betty's Hubs is trying to have it both ways. He wants the bank to take a risk by giving him a loan, but he doesn't want to show income to support the loan so he doesn't have to pay taxes to Uncle Sam. He's probably yearning for the bad old days of liar loans when that sort of thing was actually encouraged.
                        100% agree! And when they default going after any other assets becomes more difficult.

                        Time to pull the plug on this comatose loan and hit these people in the pocketbook!

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                        • #42
                          Quoth wolfie View Post
                          There's a nugget of truth behind the saying "Banks only lend money to people who don't need it".
                          " . . . A tablet unearthed at n'Yok gives a welcome glimpse into the financial affairs of the We `Having borrowed a million,' it states in transcription, `I thereby acquired credit to twice that anount.' This seems to suggest an economy not unlike our own . . . one is reminded of the motto of our own Treasury Department, To the borrower, all . . . throughout history, there has never been anything as useful as credit, for establishing credit. Without a debt, there is nothing."

                          -- Robert Nathan, Digging The Weans, as quoted by Theodore Bikel, Town Hall, NYC, 1959

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                          • #43
                            Nothing like going to the bank only to find out your employer is out of money. That happened to me once.

                            Better was my brief stint as a gas station attendant. At the end of my first week the owner paid me with a personal check. Apparently between medicaid, medicare, social security, street tax, city tax, county tax, the Berenstain Bears tax, state tax, federal tax, United Nations dues and the new Unicorn tax I was supposed to believe that taxes ate up over 70% of my pay.

                            After threatening to report him to the IRS and getting him to pay me the rest of what he owed me I walked away and never went back. In retrospect I should have reported him anyway.
                            You'll find a slight squeeze on the hooter an excellent safety precaution, Miss Scrumptious.

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                            • #44
                              My MIL managed a restaurant for an off-site owner.

                              She was supposed to handle day-to-day, and he would pay the bills, including payroll.

                              He was the guy who constantly cried, "Poor me, I have no money!" when checks to suppliers and employees bounced. In the next breath he would tell you about his new Harley, or his new Jag, or the two weeks he was about to spend in Hawaii or Jamaica.

                              Towards the end, she started paying suppliers out of the cash register, because they wouldn't wait for the owner ("Poor me! I have no money!") to get around to paying them for product. And she started paying staff DAILY in cash out of the cash register, making best guesses for payroll withholding and setting the cash aside to MAKE SURE on a weekly basis that the owner was paying the various payroll taxes.

                              Because it was anybody's guess if the owner would leave enough money in the bank to cover payroll.

                              Guy's restaurant served great food, with great service, it was always busy with good lunch crowds during the week, and with excellent weekend traffic.

                              But he was undone by his belief that it was a piggy bank that he could pull money out of whenever something shiny caught his eye.

                              Idiot.
                              I have a map of the world. It's actual size.

                              -- Steven Wright

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                              • #45
                                Quoth TonyDonuts View Post
                                But he was undone by his belief that it was a piggy bank that he could pull money out of whenever something shiny caught his eye.

                                Idiot.
                                What's truly pathetic is that there are _way_ too many bosses who are like this (evilhomer and Gerrinson ex-bosses for example)...

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