Can I run a new business after I declared Bankruptcy? Will the creditors garnish my money? How long can I be cleared the record?
Seattle, WA |
My car is repossessing. I have two houses and credit card debts for 3,000. I am going to declare Bankruptcy. I have no job right now. Can I run a new business after bankruptcy?credit card debts should be $30,000
I am not licensed In Washington, so the following is not legal advice and should be used only to give you a starting point for your own research.
Assuming you are eligible to discharge personal liability on all your debts in bankruptcy, the debts will be wiped out and you will not be garnished to pay them after you complete your bankruptcy.
The bankruptcy will remain on your credit report for 10 years, and it may harm your credit score a bit, especially right after you file.
But, if you already have repossessions or are more than 90 days past due on any of your bills, then your credit score has already suffered quite a bit and it is unlikely a bankruptcy will make it go much lower.
And, the harm done to your credit score will decrease starting in year 2. By year 3 or so, the bankruptcy will not have a dramatic effect on your credit score (though other negative items may still bring down your score.)
You might want to consider how a bankruptcy will affect your ability to get business credit. When starting a new business, lenders often require business owners to personally guarantee any business debt.
There may be other issues as well. But those are the ones that immediately come to mind.
Yes you can start a business after filing bankruptcy.
My best advice to you is to seek the advise of a competent bankruptcy lawyer. Most bankruptcy lawyers offer a first visit free consultation. Make sure that you select an attorney that has been practicing law for a considerable period of time and who's emphasis is on bankruptcy law. When you call to make an appointment be sure to find out what documents you should bring to your meeting in order to get the maximum benefit from your free consultation.