Three lessons for individuals from the Toys “R” Us bankruptcy
Toys “R” Us declared bankruptcy in September with a plan. The store was not going to give up. Instead, the story put together this plan to structure itself to reenter the marketplace successfully. Toys “R” Us is not giving up – it just went back to the drawing board to adjust its business model.
It may seem ironic that a business that thrives on keeping consumers in touch with their youth would provide valuable lessons in adulthood. Yet the store’s perseverance is applicable for anyone that is struggling financially. Lessons for those who are also struggling include:
- Mistakes happen. Financial mistakes happen. In the event these mistakes lead to difficulties making ends meet take comfort in the fact that you are not alone. The decision to consider bankruptcy is not a reflection on one’s personal situation, it is more akin to a business decision.
- There is more than one type of bankruptcy. There are different types of bankruptcy. Toys “R” Us is using Chapter 13, a version also available for individuals. This type of bankruptcy basically allows you to set up a more realistic plan to repay debts.
- Bankruptcy can offer a fresh start. Arguable, problems began when this toy selling giant in the retail world failed to transition into a market that now thrives online. The time it is taking to restructure its business plan allows for innovation and brain storming. The team behind the store can emerge from the bankruptcy stronger than ever. This is true for personal bankruptcy as well. Taking the time to develop a repayment plan and proactively get finances under control can set up for a fresh financial future.
Each form of bankruptcy has application requirements. In order to qualify, certain criteria must be met. An attorney experienced in these matters can review your situation and provide guidance on the best form of bankruptcy relief for you.