You heard right – Barbie might need a Bankruptcy Lawyer. Toys R Us’ Chapter 11 Bankruptcy rocked Mattel toys, makers of Barbie and Hot Wheels. Toys R Us filed Chapter 11 Bankruptcy last month as a result of a substantial decrease in sales and increase in debt. Mattel had previously pulled back on shipping Barbie and Hot Wheels to Toys R Us. Unfortunately,they were not prepared for the subsequent drop in sales.
Chapter 11 Bankruptcy vs. Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is reorganization bankruptcy for consumers. It allows you to take all or most of your debt and consolidate it into one pool overseen by the Bankruptcy Court and Chapter 13 Bankruptcy Trustee. A Chapter 13 Bankruptcy typically lasts three to five years but can be much shorter depending on several variable. How your Evansville Bankruptcy Lawyer structures your plan of reorganization, whether your creditors actually get to file a claim against you and how much of that claim ends up being allowed all play into how long you are required to stay in the Chapter 13 Bankruptcy.
Chapter 11 Bankruptcy is reorganization bankruptcy for businesses OR for consumers with more than $1,184,200.00 in secured debt or more than $394,725.00 in unsecured debt. Toys R Us filed Chapter 11 Bankruptcy to reorganize and barter down its $5 billion debt. Chapter 11 Bankruptcies are not limited to the max five year plans in Chapter 13 Bankruptcies. Chapter 11 Bankruptcy can last mere months or it can last off and on for years and years. The duration of the plan depends on many factors including how favorable the plan treats the debtor-in-possession and whether the debtor-in-possession is able to consistently comply with the plan after it is confirmed by the Bankruptcy Judge.
Barbie’s Bankruptcy Lawyer
So unless Barbie racked up more than $1,184,200.00 in secured debt or $394,725.00 in unsecured debt (buying all those convertibles and beach houses), then she would likely file Chapter 7 Bankruptcy or Chapter 13 Bankruptcy.
Needless to say, Barbie would benefit from speaking to a Local Bankruptcy Lawyer.