Debt relief issues: What prompts bankruptcy most often?

In Louisiana and most other states, the global, national or local economy can have a significant impact on the financial stability of individual households. Most people would agree that they have enjoyed financial gain and have also waded through some rough financial waters through the years. The latter can take a heavy toll, often leaving those afflicted in need of immediate debt relief.

Thankfully, there are numerous forms of bankruptcy that provide strong solutions to serious financial problems. Each specific plan contains eligibility requirements that must be fulfilled before applying. Which type of program a person chooses depends on his or her current financial situation. While each person’s circumstances are unique, researchers find that many people share common ground when it comes to the kinds of issues that most often lead to bankruptcy as a debt relief solution.

Above and beyond all other issues, medical issues ranks highest on most lists regarding key factors that often prompt bankruptcy applications. Some people accrue high credit card debt by using their cards to pay their medical bills. Others run into problems when they have to take extended leaves of absence from work due to medical problems.

Additional reasons many people in this state and elsewhere file for Chapter 7 or Chapter 13 bankruptcy include the inability to keep up with home mortgage payments and student loans, as well as divorce and crises sparked by providing financial assistance to family or friends in need. Louisiana residents considering filing may have questions regarding qualification prerequisites or how bankruptcy may affect credit score. An experienced attorney can provide all necessary information and can remain available to offer support throughout the debt relief process.