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Here Are A Few Suggestions You Can Make To Help Techs Avoid Tool Debt:
Only buy whats needed: There is a lot of enticing, shiny new equipment onboard the tool truck. Its easy to get sucked in, especially when everything can be bought through a credit line. But techs need to remember: theyre in the business to make money; not to collect tools and rack up bills. So, only buy whats necessary to get the job done efficiently.
Stop being brand-bias: Being brand bias is inefficient; regardless of whether youre a technician addicted to Snap-On tools, or an aspiring fashionista stuck on Louis Vuitton purses. Sure, Snap-On makes a great product, but middle-grade brands, such as Craftsman, are usually sufficient for most jobs. And for tools that are rarely used, its wise to downgrade even further to a brand like Harbor Freight.
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Buy used: Theres a lot of great used equipment out there. Check online sites, such as eBay and Craigslist, as well as local venues such as estate sales, auctions and pawn shops. Youll be surprised at what you can find.
Essentially, it all boils down to having self-control and buying what you can afford. Michael Sullivan, a personal finance consultant at Take Charge America, a credit counseling and financial education agency in Phoenix, sums things up nicely.
Next Comes The Abuse & The Financial Squeeze
On August 28, 2014, two days after the Mike Doweidts letter accusing King of poaching outside his territory, the Regians received another Certified Letter from Doweidt.
This letter stated that due to a high volume of returned tools by King over the past several years Snap-on feels obligated to do further research to determine why this is happening.
Doweidt stated that during this research period King will have to follow an onerous procedure for tool returns that no other tool dealer had to follow.
Doweidt states that King must submit a form with the customers name, address, and contact information for each tool that is returned under warranty.; If this information is not provided Snap-on will not give credit for the broken tool.; This process will remain in place until we determine the reason for such a large level of failures in your area
Each week someone from the FPT will visit you and retrieve the broken tools and the corresponding invoice or form for the customers that turned in the broken tools.; We will ship the tools to the RPC for you after we have examined them and visited the customers in question.
We also discussed the rejected tools that you have turned in and the rejected tools going forward.; These tools will not be returned to you they will be disposed of at the RPC.
From then on, Snap-on reportedly rejected all warranties submitted by King at check-in.
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The Timeline For Chapter 13
By contrast, a Chapter 13 filing is the longer of the two personal filing types, because the court arranges a monthly repayment plan to help your creditors recoup at least some money before discharge. As a result, the process usually takes about three to five years to complete.
The nice thing is that youll have a finishing date set once the court establishes your payment schedule. Youll be able to look forward to that last payment when youll finally be free and clear. And once the remaining balances are discharged, the negative item for Chapter 13 remains on your credit profile for seven years.
Keep in mind, with both filing types, the can be overcome before the penalty is removed. So you could be at a point to get a new loan and even a mortgage within 1-2 years of the completion of your filing.
Need help starting the filing process? Were here so you can get the fresh start you need.
Filing Taxes After Filing For Bankruptcy
Filing an income tax return after filing for bankruptcy does not have to be a problem, as long as you know what to watch out for, including when and how to file.
For information on the third coronavirus relief package, please visit our American Rescue Plan: What Does it Mean for You and a Third Stimulus Check blog post.
Is there life after bankruptcy? Absolutely, and it includes taxes. Filing an income tax return after filing for bankruptcy does not have to be a problem, as long as you know what to watch out for, including when and how to file.
People that file bankruptcy have to make sure that there are a few things taken care of when it comes to filing their taxes, said Joshua S. Barger, vice president of tax services at Foundation Financial Group in Jacksonville, Florida.
According to IRS Publication 908, Bankruptcy Tax Guide, the Bankruptcy Code requires a debtor to file an individual tax return, or request an extension. If this does not happen, the bankruptcy case can be converted or dismissed. In addition, the bankruptcy trustee is required to file a tax return for estates and trust, Form 1041, for the bankruptcy estate.
No matter what time of year it is, the filing deadline can seem too close for comfort — especially if you are filing or considering filing for bankruptcy. With a little planning and preparation, you will at least know what to do to minimize your stress.
– Joshua S. Barger, vice president of tax services, Foundation Financial Group
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Who Is Ted Ings
And, of course, if you see a technician racking up a giant tool bill, point out the bad habit. Suggest the methods mentioned earlier: buying only whats needed, forgetting brand bias and purchasing pre-owned tools. Getting techs out of debt and into money will help boost team spirit, while also increasing productivity and revenue.
Accruing New Debt Under Bankruptcy
One of the provisions of a bankruptcy is that the debtor may not acquire any other delinquent balances while under the courts supervision. Barger said taxes may be defined as new debt if a person is unable to pay them. That can either force the court to dismiss or convert the current bankruptcy.
New debt that a person acquires while already in a bankruptcy is not protected from collection by the bankruptcy court, because it was not disclosed in the initial filing, Barger said.
In a Chapter 11 or Chapter 13 filing, both of which stretch over a period of time, the failure to file taxes or to keep current on new tax payments can result in a conversion of the bankruptcy to a Chapter 7 unless the case is dismissed entirely, Archer said.
Chapter 7 bankruptcies are much more brutal than 11s or 13s because they will liquidate all non-exempt assets to pay creditors,” he said. ” 11s and 13s are more like court-brokered negotiations.
In a Chapter 7 case, Archer explained, the failure to pay post-petition taxes will affect neither the bankruptcy nor the tax debt.
The debt isn’t discharged in the bankruptcy case, and the bankruptcy code prohibits filing for a Chapter 7 bankruptcy more than once every eight years, he said. So that debt wouldn’t be going anywhere.
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The Timeline For Chapter 7
A Chapter 7 bankruptcyis usually the faster of the two personal filing types, but that doesnt mean that its a fast track to a clean slate. Chapter 7 filings take anywhere from four months to one year to complete. The specific time depends on the number of assets you have to liquidate and the details of your specific case.
Fact: About 2/3 of the filings submitted in the 3rd quarter of 2014 were Chapter 7.
So if you have a limited number of assets to liquidate and everything goes smoothly with your means test and the rest of your filing, then you could be done in just a few months. But if there are any complications or issues with the asset liquidation, your filing may take long. The majority are complete in six months, but there are Chapter 7 filings that take up to one year.
Keep in mind that once the filing is complete and all of your remaining balances are discharged, the Chapter 7 bankruptcy creates a negative item that remains on your credit for ten years from the date of discharge.
Conversion Of Accounts Receivable
The Bank pursues an identical theory of willful and malicious injury with regard to Debtors’ post-petition collection of accounts receivable. The Bank alleges that this collection was a conversion, that it was willful and malicious, and that the resultant debt should be excepted from discharge under § 523. This theory cannot be sustained because debts arising from Debtors’ post-petition conduct are not affected by their bankruptcy discharge.
A bankruptcy discharge relieves a debtor from liability for only those debts that arose before the order for relief. 11 U.S.C. § 727. Any debt arising after the order for relief is not discharged. Id. In a Chapter 7 case, the order for relief coincides with the filing of the voluntary petition. 11 U.S.C. § 301. At the moment Debtors’ petition was filed, all of their existing debts became subject to discharge under § 727 because they arose before the order for relief. Any debts that came into existence after the moment of filing arose after the order for relief and cannot be discharged. 11 U.S.C. § 301, 727. Debtors’ collection of accounts receivable occurred after they filed their Chapter 7 petition. Any debt arising from this conduct arose after the order for relief and is not discharged. See Id.;Bush, 912 F.2d at 993; Newmark, 177 B.R. at 290.
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First Come The Accusations: Successful Franchisee Claims Snap
According to Sally Regians blog, her husband had been a passionate Snap-on loyalist throughout his 23-year relationship with the Kenosha, WI-based tool company.
King Regian loved being a Snap-on Tool franchisee. He would have continued his business relationship with Snap-on even after the allegations against him King was a great Snap-on Dealer. HE did what everyone said he could not do. As he was told in the beginning of his career, no one in Waco, Texas can run over a $1,000,000.00 in sales or collection.
He proved them wrong not once, but multiple times.
Its seems convenient that as soon as Snap-on saw that those numbers were attainable in the Waco marketKing Regian was removed and a COMPANY store took over.
It seems that Snap-on wanted a bigger piece of the Waco pie.
According to the Regians, the attacks began with an accusatory letter that gave them no chance to respond.; Looking back, the Regians believe the letter was simply intended to begin building a false case against them not an attempt to address a real concern.
The August 26, 2014 letter was sent Certified Mail by Snap-on Regional Manager Mike Doweidt.
Doweidt accused King of selling tools outside of his territory .
Doweidt also states that on July 26, 2012, King Regian sold an AC Unit to Tommie Allen, an employee of the City of Killeen Another of Shane Gindrups designated customers.
Know How Much Time You Have Until Youre In The Clear
When consumers file for bankruptcy, they usually want the process to be over and done with as quickly as possible. After all, the sooner you complete the process, the faster you can get started rebuilding and moving forward with a fresh start.
Unfortunately, filing for bankruptcy doesnt mean your troubles are over in a snap. Even with Chapter 7 bankruptcy, which is generally the faster type of personal filing, its going to take some time.
The answer below can help you estimate how long you have on the road ahead, but if you need to file and have questions, you should talk to a professional. That way, the estimates they give you can be based on the specifics of your situation, so you know you have an accurate timeline. Call us or complete the form to get started.
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And Then After 23 Years & $13m In Sales They Gave King Regian The Boot
On April 8, 2015, King Regian received an email from Director of Franchising Tom Kasbohm congratulating King on the renewal of his Snap-on franchise.
Then, on November 30, 2015, Regional Manager Mike Doweidt sent King Regian a letter which stated that Snap-on would not be renewing Kings franchise agreement, and that after May 31, 2016 he would no longer be a Snap-on franchise owner.
Copied on the letter was Snap-on Director of asset Control Garry Frost, Regional Asset Manager David Trott, Snap-on Business Manager Gary Gwinn, Director EC Portfolio Jim Meier, Portfolio Manager, Franchise finance Doug Olson, Franchise Legal Administration Rebecca Innes Long, and Supervisor, Franchise Administration Barbara Clark.
King Regian attended the Snap-on 2016 kick-off conference where he was recognized by Thomas Kassouf, President of Snap-on, for achieving #1 Top R/A Collections for the chain with $1,025,784.00 in collected revenue for 2015.
Despite Kings numerous awards and having sold a total of more than $13,000,000 for Snap-on over his tenure, Snap-on gave his route to employee Taylor Oden, the comparatively inexperienced step-son of sales manager Warner McBride.
King & Sally Regian have started a campaign to warn Snap-on franchise owners of the danger of growing too lucrative a route with Snap-on, stating:
If Snap-on Incorporated could do this to a top-selling, high profile franchisee like King Regian, think what they could do to you!
Conversion Of Snap On Tools Inventory
Although the question of nondischargeability is purely a matter of federal law, the validity and amount of Debtors’ obligation is a question of state law. Grogan, 498 U.S. at 282-85. In this case, Iowa law determines whether Debtors committed conversion while federal law determines whether the conversion was “willful and malicious.”
Under Iowa law, conversion is defined as “a distinct act of dominion wrongfully exerted over another person’s property in denial of or inconsistent with his title or rights therein.”Blessing v. Norwest Bank Marion, N.A., 429 N.W.2d 142, 144 . A perfected security interest is property within the meaning of this definition. Id.; 89 C.J.S. Trover and Conversion § 15.
Debtors converted the Bank’s property under Iowa law when they sold their inventory back to Snap On Tools Corporation. This inventory was subject to the Bank’s perfected security interest, yet Debtors sold the collateral and retained all of the proceeds. Their actions were in denial of the Bank’s rights in the inventory and their retention of the proceeds was wrongful.
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Never Google Yourself Ever
If you read Snap-on’s public documents, you won’t find much about its issues with franchisees. Just a short boilerplate message:
“Snap-on is involved in various legal matters that are being litigated and/or settled in the ordinary course of business. Although it is not possible to predict the outcome of these legal matters, management believes that the results of these legal matters will not have a material impact on Snap-ons consolidated financial position, results of operations or cash flows.”
Luckily, there is a fairly extensive log of Snap-on’s settlements and alleged misdeeds on the Internet. Here’s one from 1988, courtesy of the Los Angeles Times, when a group of Southern California franchisees accused the company of making their routes too small for them to make a profit:
The dealers claimed at a Claremont news conference that the Kenosha, Wis.-based producer of socket wrenches and other automotive tools creates uneconomically small sales territories for new dealers while seeking to break up the territories of existing dealers. By making each dealer sell to fewer and fewer mechanics, the company ensures that every dealer will give the maximum possible sales effort, but without necessarily showing a profit, the dealers said.
Regian, who did $1,025,784.00 in “collections” for the company in 2015 alleges that Snap-on went sour on him after he spoke at a trade show and advised franchisees not to invest their entire savings in the company and to, instead, diversify.
A Different Way To File Taxes
The concept of bankruptcy is that you, as a debtor, surrender your right to handle your own affairs, and a trustee is appointed to oversee them, said Carl G. Archer, a bankruptcy lawyer with Maselli Warren, P.C., in Hamilton, New Jersey. Your affairs become part of an estate, the same way they would be if you were incapacitated or if you had died. The trustee’s sole responsibility is to pay creditors with any assets that aren’t exempt under federal or state law, whichever is applicable.
The confusion for taxpayers in bankruptcy springs from the requirement for the filing of two types of tax forms. One is for the individual and the other is for the bankruptcy estate.
As a Chapter 7 debtor, you would file your usual 1040 the same way you normally would any other time, Archer said. The trustee would not have anything to do with that because it’s not a debt; it’s an obligation that you have to file that paperwork with the federal government. The trustee, however, would file a Form 1041 for the bankruptcy estate.
On the other hand, if a debtor files for bankruptcy under Chapter 11, he typically remains in control of the assets and will act as the bankruptcy trustee. The debtor acting as the bankruptcy trustee is required to file both the individual 1040 individual return and the 1041 bankruptcy estate return.
In the case of a Chapter 13 bankruptcy, the debtor pays disposable income into a monthly plan to pay creditors.
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