• 29
  • December
    2011

Nebraska Book, the Lincoln-based company that sells new and used textbooks and runs almost 300 bookstores, announced recently that it will not be able to meet the March deadline it had previously named for its emergence from Chapter 11 bankruptcy. Company officials have not named a new deadline.

Chapter 11 bankruptcy is commonly used by businesses. Chapter 7 and Chapter 13 bankruptcy are more commonly used by individuals. Regardless of the specific type, the general idea of any bankruptcy proceeding is to give the person or business filing a chance to start over and get finances back on track.

Like all bookstores and many print operations, Nebraska Book has not quite been able to adapt to a reading landscape that has been significantly changed by e-readers and websites. And although it has a healthy revenue stream, it has posted several losses frequently. Our terrible national economy has not helped, either.

That being said, the request for deadline extension probably should not ring too many alarm bills. The 2,500-employee company probably has very complicated finances, so it is understandable that quite a bit of time would be needed to sort things out properly.

The lesson individuals should take from this is that bankruptcy needs to be done carefully and correctly, so if you need more time, you should ask your attorney whether it is possible. Bankruptcy is a significant step, but it is not necessarily something of which to be afraid. If it is done properly, it can help you get your financial commitments in line and move forward with your life.

Source: The Journal Star, "Nebraska Book extends bankruptcy deadlines," Dec. 14, 2011