These 5 issues often spark financial crisis

Many Tennessee residents keep close tabs on their finances. Then again, most do not have a financial degree of any kind but simply try to stay within budget and review their financial status every month or so. Either way, there’s no way to guarantee that financial challenges will never arise, especially a full-blown financial crisis that would prompt a need to research debt relief programs like bankruptcy.

There are numerous issues that commonly have a negative effect on personal finances. While every person’s financial portfolio is unique, many people can relate to one or more of these issues that often cause serious financial crisis. Since such crises can seem to come out of nowhere, it is important to know what options are available and where to seek support if a financial problem starts getting out of hand.

Medical expenses rank at the top of most lists regarding issues that cause financial crises. Many people in the United States are dealing with chronic health problems. Others are unexpectedly faced with emergency situations but have no way to meet the expenses associated with their conditions. Loss of income, lack of insurance and college loan debt are also some of the issues to which many people can relate that can throw a person’s finances completely out of whack.

Chapter 7 bankruptcy, as well as Chapter 13, are valuable tools that often help people resolve serious financial crisis in their lives. The latter is known as a wage earner’s bankruptcy because eligibility requirements state that a person must have reliable and sufficient income to qualify for a restructuring of his or her payment plans. Chapter 7 also carries qualification assessments that must be met before an application can be filed. If a common debt issue has led to financial crisis, an experienced bankruptcy law attorney can help a concerned Tennessee resident determine a best course of action in his or her particular circumstances.