Bankruptcy questions

[Bnorth]

In my personal situation right now we are entering breakup and its the traditional time that everyone gets off. Generally we have about 8-10 weeks of down time and all my employee's make to much money to collect EI, so they understand how to save up to get through the downtime. The big problem this year is the uncertainty of what lies down the road. Will we be be back to work as normal in early june? What will have changed? Will we be into a 6 month or longer stagnant period? Does a guy spend the money that they usually do during breakup on maintenance and repairs or do you simply park everything and close the check book?

In know of 2 very large loggers in the area who have simply shut everything down as of this Friday, every employee laid off, equipment parked and zero repairs and maintenance until further notice. Complete shutdown. Usually during breakup we all take some holidays then its work on equipment and get things ready for start up. Not this year. The side effects of this approach are all the suppliers, parts stores, mechanics, dealerships are hit very hard and they have to lay off even more people. Its just rolls on and on.

Park it and close the chequebook for at least a month. The mills don't even know what they are going to do yet so the loggers certainly aren't hearing anything reliable.

 

[K45]

Wage cuts are better than a lay off IMO.

60% of something is better than 100% of nothing.


I hope this ends soon.

And if you do that it can set a bad precedents and that is where you stay.
Rig workers took a big wage cut a few years ago and the wages never came back, now they are looking at another cut. Cost of living keeps
on heading north. That can happen to other industries as well = no more Toy fund.

 

[Caper11]

And if you do that it can set a bad precedents and that is where you stay.
Rig workers took a big wage cut a few years ago and the wages never came back, now they are looking at another cut. Cost of living keeps
on heading north. That can happen to other industries as well = no more Toy fund.

It absolutely can, a redirection of priorities is definitely a possibility with what is happening at the moment.
Keeping the wolves off the front step should be more of a concern than funding toys. IMO

 

[Stompin Tom]

And if you do that it can set a bad precedents and that is where you stay.
Rig workers took a big wage cut a few years ago and the wages never came back, now they are looking at another cut. Cost of living keeps
on heading north. That can happen to other industries as well = no more Toy fund.

Feed your family or buy toys? A pretty easy choice for most.

 

[pfi572]

Feed your family or buy toys? A pretty easy choice for most.

If in 6 months people are still financing big purchases like toys ?
People didn’t learn a f@&$ing thing and everything in yours and my world will be awesome again .

 

[Stompin Tom]

If in 6 months people are still financing big purchases like toys ?
People didn’t learn a f@&$ing thing and everything in yours and my world will be awesome again .

You wanna know what one of my worries is about all of the stuff going on right now? The government is offering all sorts of handouts, but where does the money come from? Once things get back to normal (if) the tab will have to be paid. The government will be there with their hands out. GST raised? Income tax increase? PST increases? A new tax to add on like the GST? The Covid tax?

The money will have to come from somewhere and sadly its the hard working guys and the small business guys who will get hit the hardest.

 

[pfi572]

You wanna know what one of my worries is about all of the stuff going on right now? The government is offering all sorts of handouts, but where does the money come from? Once things get back to normal (if) the tab will have to be paid. The government will be there with their hands out. GST raised? Income tax increase? PST increases? A new tax to add on like the GST? The Covid tax?

The money will have to come from somewhere and sadly its the hard working guys and the small business guys who will get hit the hardest.

Haha
It’s like you are talking for me as have had this same talk with others .
Just moving some money around and the smart people in banking are saying the same think ?
Not worried so much about the next 6-12 months but after that ?
Who’s paying for all this ? Who’s going to survive through this financially and do on ?
I said the same thing with GST ? It’s going to go up as well as corporate tax , personal tax and so on .
They could even hit RRSP for a one time 20% withdrawal if they so decided on bigger accounts ?
Spooky to say the least .

 

[Bnorth]

If in 6 months people are still financing big purchases like toys ?
People didn’t learn a f@&$ing thing and everything in yours and my world will be awesome again .

I'm waiting on deals. Papa wants a CR500.

 

[Cyle]

In my personal situation right now we are entering breakup and its the traditional time that everyone gets off. Generally we have about 8-10 weeks of down time and all my employee's make to much money to collect EI, so they understand how to save up to get through the downtime. The big problem this year is the uncertainty of what lies down the road. Will we be be back to work as normal in early june? What will have changed? Will we be into a 6 month or longer stagnant period? Does a guy spend the money that they usually do during breakup on maintenance and repairs or do you simply park everything and close the check book?

In know of 2 very large loggers in the area who have simply shut everything down as of this Friday, every employee laid off, equipment parked and zero repairs and maintenance until further notice. Complete shutdown. Usually during breakup we all take some holidays then its work on equipment and get things ready for start up. Not this year. The side effects of this approach are all the suppliers, parts stores, mechanics, dealerships are hit very hard and they have to lay off even more people. Its just rolls on and on.

I'm gambling on it will be short and going to be doing every bit of maintenance and repairs so everything of mine is perfect when this chit is over. Will I regret spending the $10k or so, who knows. But I also know i'd regret doing nothing if once this chit is over it's stupid busy and i'm fawking around repairing chit. Well that's once I get the time, fortunately still working 3-4 days a week.

 

[Cyle]

FYI

Anyone who would work for 16 or 18 an hour on a rig is downright fawking stupid. You can make that anywhere in the city at a grocery store or mcdonalds and they are hiring like crazy. I understand employers especially oilfield are hurting, but if I was an employee and handed a pay sheet like that I would go throw it in the face of the owner and tell him to shove it up his a$$. If you can only pay that little, you can't afford to operate. Anything less then $20/hr for anything remotely physical/out of town is a joke.

 

[Bikeswithtrax]

In my personal situation right now we are entering breakup and its the traditional time that everyone gets off. Generally we have about 8-10 weeks of down time and all my employee's make to much money to collect EI, so they understand how to save up to get through the downtime. The big problem this year is the uncertainty of what lies down the road. Will we be be back to work as normal in early june? What will have changed? Will we be into a 6 month or longer stagnant period? Does a guy spend the money that they usually do during breakup on maintenance and repairs or do you simply park everything and close the check book?

In know of 2 very large loggers in the area who have simply shut everything down as of this Friday, every employee laid off, equipment parked and zero repairs and maintenance until further notice. Complete shutdown. Usually during breakup we all take some holidays then its work on equipment and get things ready for start up. Not this year. The side effects of this approach are all the suppliers, parts stores, mechanics, dealerships are hit very hard and they have to lay off even more people. Its just rolls on and on.

I am not planning on a long time down, so wrenching has begun on any pieces of equipment and all the trucks coming in that are not still working.
Hopefully by the time road bans come off its all ready to roll.
Roll the dice, its like Vegas.

 

[Bikeswithtrax]

It absolutely can, a redirection of priorities is definitely a possibility with what is happening at the moment.
Keeping the wolves off the front step should be more of a concern than funding toys. IMO

I'm with you.
Making less is a lot better than making nothing.
$6k a month would beat $0.

 

[Stompin Tom]

Haha
It’s like you are talking for me as have had this same talk with others .
Just moving some money around and the smart people in banking are saying the same think ?
Not worried so much about the next 6-12 months but after that ?
Who’s paying for all this ? Who’s going to survive through this financially and do on ?
I said the same thing with GST ? It’s going to go up as well as corporate tax , personal tax and so on .
They could even hit RRSP for a one time 20% withdrawal if they so decided on bigger accounts ?
Spooky to say the least .

Here is a handout I just dont understand. The guaranteed $40,000 small business loan. The kicker? If you pay back 30,000 before Dec 31 2022, you dont have to pay back the last 10 grand, its a freebee. So why would any business man turn that down, needed or not? I sign a paper and they put 40 grand in my bank, I put 30 grand in a savings account, or invest it for 20 months, then just return it to the government, and I get to keep the other 10 grand.

Its supposed to be there for those that need it, but interest free for 20 months then keep 10 grand for yourself? Thats not a business helper, its just a plain stupid plan.

 

[Stompin Tom]

I am not planning on a long time down, so wrenching has begun on any pieces of equipment and all the trucks coming in that are not still working.
Hopefully by the time road bans come off its all ready to roll.
Roll the dice, its like Vegas.

Had a long talk with a big contractor in the this area. Here is his concern. With all the shut downs and no construction, if the mills cant sell the lumber, they dont want the logs. Every mill has a pretty big inventory of cut lumber, they will want to move that out to help cash flow. Every mill has a large log inventory this time of year, Canfor, Westfraser, Sinclair Group have all announced at least 3 week shut downs starting this week and next. That is less logs consumed. Is there going to be a demand for lumber this summer? With all the negative economic news in the world, how much construction is their going to be in the next year? With all the short term job losses how much new home construction will there be? We all think its balls to the wall when the bans come off, but if the mills cant sell the lumber ...........................

 

[S.W.A.T.]

Here is a handout I just dont understand. The guaranteed $40,000 small business loan. The kicker? If you pay back 30,000 before Dec 31 2022, you dont have to pay back the last 10 grand, its a freebee. So why would any business man turn that down, needed or not? I sign a paper and they put 40 grand in my bank, I put 30 grand in a savings account, or invest it for 20 months, then just return it to the government, and I get to keep the other 10 grand.

Its supposed to be there for those that need it, but interest free for 20 months then keep 10 grand for yourself? Thats not a business helper, its just a plain stupid plan.

Be silly not to sign up for it.

 

[skegpro]

Here is a handout I just dont understand. The guaranteed $40,000 small business loan. The kicker? If you pay back 30,000 before Dec 31 2022, you dont have to pay back the last 10 grand, its a freebee. So why would any business man turn that down, needed or not? I sign a paper and they put 40 grand in my bank, I put 30 grand in a savings account, or invest it for 20 months, then just return it to the government, and I get to keep the other 10 grand.

Its supposed to be there for those that need it, but interest free for 20 months then keep 10 grand for yourself? Thats not a business helper, its just a plain stupid plan.

Where do I file for that one?

How many of my numbered companies is that good for? Lol

 

[Stg2Suby]

Where do I file for that one?

How many of my numbered companies is that good for? Lol

Online through RBC and more to be announced next week, unlimited number of companies but you have to draw min $50k last year on each to qualify.

That's what I understand from my accountant form letter anyways..

 

[Stompin Tom]

Where do I file for that one?

How many of my numbered companies is that good for? Lol

They only real criteria is you had a payroll of not less than $50,000 in 2019. Applications open Monday April 6. They expect to be busy. You apply at the bank where you have your business account at.

 

[Dragonalain]

I'm waiting on deals. Papa wants a CR500.

I would also like to scoop up a AF CR500.

 

[S.W.A.T.]

They only real criteria is you had a payroll of not less than $50,000 in 2019. Applications open Monday April 6. They expect to be busy. You apply at the bank where you have your business account at.

Yup that's my understanding of it