C+7 nKn 6.2 Michelle Starts over after Bankruptcy A year after declaring bankruptcy and moving, with her daughter, back into her parents home, Michelle Lamphere is about to get a degree in nursing. As she starts out in a new career, she also wants to begin a new life-one built on a solid financial base. Michelle will be starting out as a full-time nurse at a salary of $42,000 a year, and plans to con tinue working at a second (part-time) nursing job that provides an annual income of $10,500. She will be paying back $24,000 in bankruptcy debts and wants to be able to move into an apartment within a year, then buy a condo or house in 5 years. Michelle will not have to pay rent for the time she lives with her parents. She also will have child care at no cost, which will continue after she and her daughter are able to move out on their own. While the living arrangement with her parents is great finan- cially, the accommodations are "tight," and Michelle's work hours interfere with her parents' routines. Everyone agrees that one more year of this is about all the family can take. However, before Michelle is able to make a move, even into a rented apartment, she will have to reestablish credit over and above paying off her bankruptcy debts. To rent the kind of place she'd like, she will need to have a good credit record for a year and to buy a home she will need to sustain that credit standing for at least 3 to 5 years. Questions 1. In addition to opening checking and savings accounts, what else might Michelle do to begin establishing credit with a bank? 2. Although Michelle is unlikely to be able to obtain a major bank credit card for at least a year, how might she begin establishing credit with local merchants? 3. What's one way she might be able to obtain a bank credit card? Explain. 4. How often should Michelle monitor her credit standing with credit reporting services? 5. What general advice would you offer with regard to getting Michelle back on track to a new life financially