We all make mistakes when we are young. The important thing about making a mistake is learning from the experience and not doing the same error again.
Fashion icon Tommy Hilfiger learned this firsthand when he went from entrepreneur to bankrupt in his twenties. Like many kids of his era, Hilfiger spent his childhood and adolescence working hard and earning money from odd jobs. Lured by the immediacy of a paycheck, after high school he spurned his parent’s wishes for college and instead started a business with friends selling jeans, sometimes out of the back of his car. It was a smash success and soon they had stores on campuses throughout the Northeast.
But Hilfiger wasn’t yet a businessman with a mind toward the future, nor did he have the experience to realize that all companies endure hardship. He took his success and burned through his finances by constantly partying in New York City. At 25 his accountant told him he was broke. Hilfiger was faced with the choice of bailout or to file for chapter 11 bankruptcy. He chose the latter.
For many people bankruptcy can feel like the ultimate failure, but Hilfiger took it as a new start. He worked hard and studied until he understood how businesses, budgets, and balance sheets worked. Hilfiger eventually thought about what long-term goals he envisioned and made a plan to attain those goals.
But success isn’t a straight line, and it took Hilfiger many failures to finally get it right. He had deals go bad and buyers pull out, but refused to quit. In the midst of all that hard work he changed his personal habits, lived on a budget and was ready when the mercurial world of fashion turned its head toward his designs. Now his fashions earn between $5 and 6 billion per year.
There are two primary types of personal bankruptcy and it’s important to know the differences if you are considering filing for bankruptcy. If you’re thinking about debt consolidation, credit counseling, or hiring a Chapter 7 or Chapter 13 bankruptcy lawyer in Las Vegas, contact DeLuca & Associates today to discuss your options. Like Tommy Hilfiger, it could be your first step toward a better future.
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