Because interest rates are going up, you're going to hit a point where the opportunity cost for the money the restaurant is worth becomes greater than what payments you're getting out of it. It might be a good idea to actually go and foreclose before that happens.
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So >$100k in loans and liens. Unless she gets another inheritance I think this might be it.
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Quoth TheSHAD0W View PostBecause interest rates are going up, you're going to hit a point where the opportunity cost for the money the restaurant is worth becomes greater than what payments you're getting out of it. It might be a good idea to actually go and foreclose before that happens.
It actually makes more sense to let the property go tax forfeit and let the county take it. We'll keep getting the automatic payments from her checking account (when there's money there). We have an Small Business Administration guarantee, so they'll cover about 75% of the remaining loan amount. Then we would write off the rest. It would probably be less than legal fees if we foreclosed.
Tama, I've been thinking this might be it for years. Somehow, Betty has continued to hang on by the barest thread."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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Quoth Blue Ginger View PostAre her staff and suppliers at least getting paid? Or do they not have any idea what is happening behind the scenes?"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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I have to ask as well:
I wonder where this money is coming from. It seems like, reading through these related threads, "Betty" will either come up with the money at the last minute (usually thousands of dollars) or just blow it off. I wonder if they're gambling with a lot of it, and that might be the issue.
So I have to wonder where the money's coming from. Especially if she's not able to pay her employees. The first time I didn't get paid when I was supposed to be, I'd be out looking for a new job.
With everything Ghel has told us, I'm actually a little surprised the bank has been as lenient as they have seemed to have been, considering this thread started in November of 2014. Nearly four years ago.Skilled programmers aren't cheap. Cheap programmers aren't skilled.
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Quoth Ghel View PostBetty keeps coming up with the cash for us to make out money orders for her suppliers. Her staff, not so much. One of her employees continues to come in with old payroll checks to cash, and all we can tell him is that there aren't funds available to cash the checks. I'm surprised he hasn't found another job yet.
And if she can't always pay her employees, I'm betting she isn't paying the IRS the taxes relating to payroll either. What would happen if an employee called the IRS on her? Would the employee have to pay the taxes that she didn't? Or would they be in the clear and IRS go after her/the business itself?
(I know that the ATO (Oz Tax Office) will go after the employer for unpaid taxes, unless the employee is actually a contract and should be lodging and paying their own tax, super, etc.)A good bookshop is just a genteel Black Hole that knows how to read. - Terry Pratchett, Guards! Guards!
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Quoth Blue Ginger View PostI'd be demanding to be paid in cashFool me once, shame on you. Fool me twice, you speak with the Fraud department. -- CrazedClerkthe2nd
OW! Rolled my eyes too hard, saw my brain. -- Seanette
she seems to top me in crazy, and I'm enough crazy for my family. -- Cooper
Yes, I am evil. What's your point? -- Jester
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Quoth mjr View Post... considering this thread started in November of 2014. Nearly four years ago.
To answer everybody's questions (a lot of this is guesswork on my part):
Betty has very few employees. The one who has stuck with her the longest is her daughter, but I don't know why even she is working there, knowing her mom's business is doing so poorly. At least, I assume she knows. She's not stupid.
We've talked a bit about the tax consequences for her employees in this thread (or maybe the last one?), and it's not good. It sounds like the employees would be responsible for the taxes if Betty's not sending the withholding to the state or IRS.
Betty's husband has other sources of income: sales of timber or cows. They also appear to have a gravel quarry on their land, so they may be selling gravel as well. But we've never gotten updated financial information, so we don't have numbers on any of that. We know they have other accounts at the local credit union and perhaps other banks as well. We have no information on how much they have on deposit there, however. And considering how antagonistic her husband has been when we've met with him, it's possible he's refusing to use his income to support her business."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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In the husband's place, I wouldn't use my income to support her business either! A gambling addict is a money hole, and if he has any conception of how bad that can get, it'll be separate accounts all the way.
mjr: The first time I didn't get paid when I was supposed to be, I'd be out looking for a new job.
And I was, when I worked for a Startup From Hell. (Summary: Tycoon Jr. was hoping to catch the wave of the new Computer Age, so he started a software company. I was the fourth employee, and the first even slightly-experienced programmer (And I was between years at college.) Their only product was supposed to compete with MS-Paint -- a freebie for companies to give away with their hardware. Problem was, it was pushed up against the 640K memory limit of the time, needed two diskettes to load, was slower than shit, required specific video hardware, and had an awful user interface. (See also: Three non-programmers writing a paint program.)
The one credible customer I met saw this thing and basically snickered. When Tycoon Sr. shut off the money tap, I went to work for the wouldn't-be customer....
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Quoth Mental_Mouse View PostIn the husband's place, I wouldn't use my income to support her business either! A gambling addict is a money hole, and if he has any conception of how bad that can get, it'll be separate accounts all the way.
Since we're not sure how informed Betty's husband is, we're insisting that they both come in to discuss it all."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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