News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
The number of Upper Cumberland bankruptcy filings has remained consistent, but certain groups have struggled more than others.
That is according to Cookeville Bankruptcy Attorney Jay Leftkovitz. Leftkovitz said since COVID began some businesses have struggled.
“The relief for businesses has dried up,” Leftkovitz said. “In some cases, the PPP loans and other things, businesses have needed to seek solutions.”
Leftkovitz said his office often sees issues of unemployment and debt. Leftkovitz said he expects more clients to seek repayment plans for debt as more benefits are removed.
“A number of businesses have been affected and there have been a number of individuals affected by COVID,” Leftkovitz said. “We’re right now seeing unemployment end which has provided a wonderful safety net for people in this time. As that finishes up, you’re going to see that safety net go away and more individuals looking into bankruptcy as a potential option.”
Leftkovitz said for those facing financial pressure, he recommends looking at your own budget. Leftkovitz said get the information of what you can afford and utilize legal help to determine of bankruptcy is an option.
“Bankruptcy is actually a part of the constitution,” Leftkovitz said. “It is a solution for people to get out of their dates, and it is something that is managed, overseen by the department of Justice. It is either a normal supervised repayment plan that operates a lot like a debt consolidated repayment plan in the form of Chapter 13, or it is a fresh start clean slate in the form of Chapter 7.”
Leftkovitz said he thinks as bankruptcy as a tool in the tool kit to be able to overcome challenges that use the court system. Leftkovitz said in a short period of time, people can see results of relief.
