The new millennia has not been kind to major retail outlets. One by one, giants like Toys “R” Us, Subway, Teavana, and Rite Aid closed hundreds of stores across the United States in 2018. Online megastores like Amazon and EBay have faced off with their competitors, titanic stores locked in mortal combat like King Kong and Godzilla, and basically obliterated them.
This is not the first time we have seen Goliath fall in recent years. In 2011 Blockbuster Inc., folded its company as Netflix brought down their final, lethal stroke. For decades Blockbuster had a monopoly on the movie rental market, but they could not keep up with the changing technology. In 2000, Netflix’s CEO Reed Hastings approached Blockbuster’s CEO, John Antico and offered the then-reigning entertainment monarch the chance to buy the new company for just $50 million dollars (which was then only a DVD mailing service as streaming had not taken off yet). Antico was not convinced that Netflix’s business would survive, and so he passed on the deal. The rest, as some say, is history.
This new tech revolution has swept across almost all industries. This wave of change has certainly left marks, or some would claim scars, on Illinois businesses. Carson’s was once a staple of the Chicago retail scene. In April of 2018, their parent company filed for bankruptcy and all of Carson’s remaining stores were closed.
The sad reality is that if these mega-businesses can fail, any small business can certainly do so, as well. We have seen it time and time again. A business fails, its workers are laid off, and a few months later some workers must file for bankruptcy. In Illinois, the court will evaluate your income through something called a “means test” to determine your eligibility for filing for bankruptcy.
The court uses this test to examine your family size, income, and expenses in order to see if you can adequately pay off your debts. For high income earners ($60,000-$100,000) there is a second, highly intricate test that they must pass before being eligible to file for chapter 7 bankruptcy in an Illinois court. If this test is failed the petitioner must prove that there are special circumstances for them to be allowed to file for bankruptcy.
How We can Help
Every day Newland & Newland LLP helps people just like you file for chapter 7 bankruptcy successfully in a court system that will analyze their income down to the very last line of the ledger. As discussed above the financial jungle of the 21st century is a savage one. Companies devour one another, there are jobs one day and lay-offs the next. Contact our law firm if you believe that you have to file for bankruptcy. It is a complex process and we have teams of legal professionals who are ready to answer your questions 24 hours a day, seven days a week. We serve clients in the Arlington Heights, Palatine, Rolling Meadows, Libertyville, Mundelein, Buffalo Grove, Schaumburg, Elk Grove, and Itasca areas.
(image courtesy of Drew Beamer)