How difficult will it be to start a business after bankruptcy?

Asked over 2 years ago - Yelm, WA

I've had a dream of starting my own business for some time, and am now in the process of writing a business plan. I also went through a bankruptcy two years ago, and am still rebuilding my credit. Is there any chance at all that I will be able to secure funding to start my business, or will I probably have to wait until it comes off my credit report?

Attorney answers (4)

  1. Douglas Jay Lineberry

    Contributor Level 12

    4

    Lawyers agree

    Answered . It depends on what kind of credit you'll need to get the business going, underwriting standards, whether you have security, etc. In other words, there is no easy "yes" or "no" answer here for you. Only a lender or investor can tell you whether they'll give you funding or not. You should finish your business plan and then go talk to someone about a loan. Good luck with it!

    The foregoing is commentary regarding a general legal question. It is not intended to be legal advice specific to... more
  2. Walter C Oney Jr

    Contributor Level 17

    5

    Lawyers agree

    Answered . You don't need a lawyer for this -- you need a banker. The only way to know how hard it will be to get credit is to try. If you're turned down because of something in a credit report, be sure to ask for the free copy of the report that the lender is legally required to give you.

  3. John Anton Sterbick

    Contributor Level 8

    2

    Lawyers agree

    Answered . Debtors are actually a better loan risk AFTER bankruptcy than before but contact the SBA for their current requirements.

    I am not your attorney and am not giving legal advice.
  4. Sidney Joseph Diamond

    Contributor Level 12

    2

    Lawyers agree

    Answered . I would say it is not going to be easy and you are going to be subject to a lot more review than most people starting a business. Whether or not you will get a loan will depend on the type of loan you are asking for and the credit extender you are dealing with. I doubt that you will have to wait 8 years to start a business but you are certainly going to have to show stability and an abiliity to repay it.

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