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Did You Get Your Christmas Goose this Year?

By Joseph McDaniel, Esq.

A lot of small businesses file bankruptcy because the boss loves the employees too much.

Because he loves the employees, when the volume of business drops, he fails to take action to drop the business overhead.

That means that the overhead runs higher than the income, and that means that the entire business rowboat goes to visit Davy Jones.

Sadly, the best way a boss can show his love for his workers is to pay attention to the income, and drop the overhead as needed.

Otherwise, the entire Scooby Gang winds up sputtering, gagging, and swallowing salt water, and waiting for the Great White and his visit to their Christmas Goose.

So if this was your year for your Christmas Goose out the front door, understand that the boss loves you, too.

But the rowboat was taking on water faster than he could bail.

Now your job is to swim over to a new job; you may have to file a bankruptcy first, to reduce your personal overhead.

The ideal fact pattern would be 1) getting fired, 2) passing the means test because you got fired and received no wages for x months, 3) scraping off every dollar of debt that can be discharged in your Chapter 7 Bankruptcy, and 4) getting a new job at a higher rate of pay, and starting a non-competing business on the weekend so that you are not at the mercy of the market when it hiccups again.

And then saving like a fiend in a tax-sheltered, exempt from creditor-depredation vehicle, and finally retiring with a million in either Aruba or Key Largo. Remember to spend enough on yourself and those you love so that you don't feel deprived, or you will ultimately fall off the savings wagon.

p.s. Is there really a Key Largo, or was that just a Humphrey Bogart movie?

p.p.s. Apparently, there is a Key Largo, and it's one of the Florida Keys! 

Full post as published by Arizona Bankruptcy Attorney Blog on December 09, 2010 (boomark / email).