If you feel like the current economy doesn’t allow you to purchase as many small splurges and conveniences as it used to, you’re not alone. It’s basically impossible to go anywhere without being reminded of how much costs have risen in the past few years. The price of oil has shot up due to geopolitical disputes, raising costs even further than tariffs already have. And when households barely have enough to keep a roof over their heads and the lights on at the end of the month, expenses like fast-casual dining go by the wayside. But 2026 has been struck by another horror besides the cost of living crisis- an outbreak of cyclosporiasis. This illness was traced to iceberg lettuce, leading most people in the United States to completely cut out all forms of lettuce for the month of July. Therefore, it may not come as a surprise that a restaurant with “Salad” right in the name was driven to bankruptcy. Salad And Go declared bankruptcy on August 4, 2026, announcing the closure of all of its restaurant locations. This represents not only a major loss for the healthy eaters of Tucson, but a larger phenomenon of an affordability crisis for non-essential goods and services. If you’re feeling the squeeze, filing for bankruptcy could help loosen the economy’s grip on your lifestyle. Start your bankruptcy journey today with your free consultation by phone at 520-307-0020 for more information. 

Why Did Salad And Go File For Bankruptcy?

Salad And Go was quickly growing in popularity as a healthy fast food chain, even after the COVID-19 pandemic. After starting in Arizona and Nevada, spent tens of millions of dollars to expand into Texas and Oklahoma. However, this venture wasn’t as successful as the restaurant had been in more western states, and the restaurants in Texas and Oklahoma were closed before Salad And Go ever announced its bankruptcy filing. A failed investment is never great for anyone’s financial situation, which occurred in 2021, right around when the cost of living crisis began to explode. More recently, increasing gas and labor prices have made it more expensive to run a business. Additionally, tariffs have increased the price of food and other necessities so that potential customers have less disposable income for things like fast-casual dining. 

When customers do want to splurge on a meal from a fast-casual restaurant, they don’t want to get violently ill afterwards. That is exactly what was threatened by the cyclosporiasis outbreak. Salad may have a reputation for being a diet food, but no one wants to lose weight in the way that cyclosporiasis would make them. This outbreak brought Salad And Go’s sales down by more than 1% for the month of July. Already struggling, Salad And Go responded by filing for chapter 11 bankruptcy in August. 

What is Chapter 11 Bankruptcy?

If you or someone you know has filed for bankruptcy, you are probably more familiar with chapter 7 or chapter 13. If your knowledge about bankruptcy mainly comes from the headlines, you are probably more familiar with chapter 11. However, this type of bankruptcy can be used by both businesses and consumers. The feature of chapter 11 bankruptcy that stands out the most is the creditor committee. It is required of all businesses that don’t qualify for a small business filing, or those with more than $7.5 million in debt. This committee has a great deal of power over the outcome of a chapter 11 bankruptcy case. If the debtor doesn’t enter the case with a pre-packaged deal to address debts, the committee will be voting on this issue. They will vote on other important issues while the case is pending, like downsizing or expanding, or selling off company inventory. But the debtor will be protected from them in the meantime by the automatic stay. Once the debtor and creditors come to an agreement for a bankruptcy plan, it can be approved by the court and put into action. There is no set time frame for how long a chapter 11 bankruptcy case will last from filing to discharge. 

Filing for Chapter 7 or Chapter 13 Bankruptcy in Tucson, Arizona

Debt comes in many forms, and so does bankruptcy. Chapter 7 is the most commonly filed form of consumer bankruptcy in Tucson, with endless potential to clear unsecured debts. Businesses can also use it to liquidate under the right conditions. However, filing for chapter 7 bankruptcy won’t clear secured and priority debts. When those debts are the primary concern, or the debtor otherwise doesn’t qualify for chapter 7 bankruptcy, they may instead be eligible for chapter 13 bankruptcy. A chapter 13 plan must pay off those debts in full, but can clear unsecured debts will partial or no repayment. You can compare your household income to the state median household income or use the means test to show you don’t have enough disposable income to pay off your debts to qualify for chapter 7 bankruptcy. To qualify for chapter 13 bankruptcy, you will use the means test to show you can pay off your mandatory debts in either 3 or 5 years. Whether your assets are protected by bankruptcy exemptions could be another factor in the chapter you decide to file. 

There are some steps you will need to take as a bankruptcy debtor regardless of the chapter filed. All bankruptcy debtors must complete two online courses, with the first one being completed before filing. The second will need to be taken within 60 days of the 341 Meeting of Creditors, a hearing mandatory for all bankruptcy debtors. But that is the point where the two chapters of bankruptcy branch off. A chapter 7 debtor’s case is eligible for discharge after those 60 days. This is really just the beginning of a chapter 13 case. Chapter 13 debtors must attend an additional hearing- the plan confirmation hearing- to verify that they will be able to complete their payment plan given their overall financial situation. Then those payments continue for the next 3 or 5 years. 

Does Salad And Go’s Bankruptcy Filing Have You Thinking Of Following Suit? Learn More About Bankruptcy With Our Firm, Free Of Charge. 

While the cyclospora outbreak didn’t help things, Salad And Go ultimately filed for bankruptcy because it has become too expensive to go out for lunch. The cost of living is high, and the job market is unforgiving. This is the kind of environment that can make it impossible to escape from debt. Life isn’t meant to be spent working to pay off interest and dodging collection efforts from your creditors. When you clear the burdens of debt from your plate, it leaves you more time and energy to devote to other areas of your life. Filing for bankruptcy is less stressful when you have a reputable bankruptcy firm handling your case. Retaining a bankruptcy attorney is more affordable when you choose a firm that offers flexible payment plan options. Our Tucson Bankruptcy firm offers both experienced legal representation and payment options designed to work with your budget. To schedule your free phone consultation today, call 520-307-0020.