Rebuilding Credit After Bankruptcy

A Level Academy Islamabad

Transcript

00:00It may seem dire, it may seem hopeless, but there is life after bankruptcy.

00:06And no, we don't mean a Mad Max kind of life.

00:10We mean life-life, as in the one you lived before, well, with a few alterations and a

00:16little more moderation.

00:17So how do you go about building credit after bankruptcy?

00:22Before we get into the practical steps, it's crucial to establish and maintain a sensible

00:26attitude towards spending.

00:29Live within your means, conserve your finances, embrace frugality, avoid splurging.

00:35Now to the pragmatic steps.

00:37Even though bankruptcy wipes much of your debt clean, you must go about the business

00:42of improving your credit score.

00:44This means acquiring debt, yes, in order to pay it back responsibly and re-earn a trustworthy

00:50rep.

00:51Apply for a secured credit card at a bank or credit union, which requires a deposit.

00:57Also get yourself a credit card with a low credit limit and a low-to-no annual fee.

01:02It also might be a good idea to take out a small, manageable personal loan, say to repair

01:06that hole you put in the wall reading a final collection notice, that will be easy to pay

01:11back.

01:12On-time monthly payments to all of these will start the rebuilding process.

01:17Important might be too small a word to describe how much on-time payments matter from here

01:22on out.

01:23So let's call them mega-important wrecks.

01:27Don't be late with credit cards, loans, general bills, your Venmo half of brunch.

01:36Okay, the last one won't help your credit, but it harkens back to what we said earlier

01:40about an overall outlook.

01:42By sticking to this, in time, you will be like a person reborn.

01:47We at ICE Legal specialize in bankruptcy and debt relief, and we're here for any kind

01:52of additional help you need.

01:53I mean, not right here in your presence, you know, online and stuff.