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  #31  
Old 11-20-2014, 07:18 PM
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notalwaysright notalwaysright is offline
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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.
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  #32  
Old 11-20-2014, 08:39 PM
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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.
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  #33  
Old 11-22-2014, 03:33 PM
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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.
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  #34  
Old 11-22-2014, 06:15 PM
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It very much sounds like you are going to end up forclosing eventually, no matter what. Just choose now or later...
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  #35  
Old 11-22-2014, 07:40 PM
eltf177 eltf177 is offline
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Quote:
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  
Old 11-22-2014, 08:12 PM
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Quote:
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  
Old 11-22-2014, 10:43 PM
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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.
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  #38  
Old 11-22-2014, 11:07 PM
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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  
Old 11-23-2014, 04:01 AM
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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.
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  #40  
Old 11-23-2014, 05:41 AM
wolfie wolfie is offline
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There's a nugget of truth behind the saying "Banks only lend money to people who don't need it".
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