It is pretty clear from the number of people filing bankruptcy that times are tight with money. That's why I found it very interesting when I stumbled upon an article about Borders booksellers trip trough Chapter 11.
It appears that the attorney representing Borders has advocated for the top executives to collect bonuses representing, in some cases, 150% of the base salary of individual executives. This for a company that had to file bankruptcy. Oh, by the way, the salaries that these executives are currently earning are as high as $750,000.00. I can't imagine very much sympathy for these executives from the majority of my clients, who are looking into filing Chapter 7 Bankruptcy.
The sad truth of this story is that if the U.S. Trustee come to an agreement with the attorney for Borders some of these bonuses will get paid. The part of this story that goes under reported, along with any story about failing businesses, is the impact it will have on the employees of Borders, many of whom are probably going to have to look at personal bankruptcy if the reduction in household income makes it difficult to pay creditors.
