Bankruptcy is something that could happen to anybody. One of the causes of bankruptcy is carelessness in our finances. There are times when we do not follow our budget. We try to accommodate unnecessary expenses just to finance our lifestyle and buy what we want not what we need. In view of this, our expenses will have the tendency to get bigger unexpectedly. And surely it will have a great effect to our financial capability.

Many years ago, any person would be heavily penalized or sometimes a harsh jail sentence if he could pay his debts. At present, you are still given a chance to reestablish your credibility as a borrower. Remember, you are not the first person to have debts and at the same time not the last. To be bankrupt is indeed a lesson we could learn from because there is no such thing as a mistake that’s done twice.

To make a fast recovery from bankruptcy, you need to consult your lawyer. Tell him about your financial situation and what really happened. Be open to him regarding your credit and the list of your creditors. You could also make use the services of a credit counselor for a comprehensive assessment of your problem.

There are creditors who are willing to offer credit in order to help people regain their financial status in life. They offer credit, loans and mortgages. For them bankruptcy is not only due to a person’s unreliability. We can not deny the fact that healthcare and education payments are very expensive. Hence, we should thank these creditors who will still trust and believe in us.

In order to regain what was lost from bankruptcy, we need to have the following two reminders.

1. That there is no such thing as forever in credit, secure and use a credit in order to reconstruct your credit status.

2. There are no mistakes but lessons to learn, examine and evaluate your credit report, be sure to have a credit card that is protected, apply for an installment loan, be a member of a credit union.

For our purpose of discussion, let us focus our attention on having a credit card that is protected. There are two kinds of credit so as to reconstruct our credit score.