203005
QuizMultiple Choice

Bankruptcy

Question 203005 • FL-2102371-Personal Finance and Money Management

After filing for bankruptcy, you are working on repairing your credit and preventing future financial problems. You have been given several suggestions to expedite the process.Which of the following actions should you avoid?

Answer
A
Seek additional income to build an emergency fund.
B
Apply for a loan for a new car to build your credit back up.
C
Auto-pay all recurring bills to avoid making late payments.
D
Place a deposit with a credit card issuer to open an account.

Explanation

Avoid applying for a new car loan just to rebuild your credit. Taking on a large new debt soon after bankruptcy can strain your budget and increase the risk of missed payments. Seeking extra income, automating bills, and using a deposit-backed credit card can support financial stability when managed carefully.

AI-written and checked against the verified answer.

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