' Can Personal Bankruptcy Affect My Business? - Law Offices of Robert M. Geller, P.A.
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Can Personal Bankruptcy Affect My Business?

can personal bankruptcy affect my businessIf you’re a business owner considering filing for bankruptcy, it’s important to understand how this decision impacts your business. From potential legal issues to the impact on your credit score, there are many factors that you should consider before making a decision.

Here’s what you need to know.

Impact of Filing for Bankruptcy on Your Credit Score

One of the most immediate effects of filing for personal bankruptcy is its impact on your credit score.

Bankruptcy can remain on your credit report for up to 10 years. This makes it difficult to get financing or secure credit accounts in the future. It could be especially damaging if you decide to start a new business venture down the line or if you need money for your current business. Lenders take a close look at your credit history when evaluating loan applications.

Difference between Personal and Business Bankruptcy

In some cases, individuals who have filed for personal bankruptcy may be tempted to apply for business bankruptcy to protect their assets from creditors and avoid further financial trouble. https://www.thebalancemoney.com/what-is-business-bankruptcy-393017

However, it is important to remember that these two types of bankruptcies are treated differently by the courts and creditors.

Personal bankruptcy is only applicable to debts incurred as an individual. Business bankruptcy applies exclusively to debts incurred by a company or organization. As such, filing for business bankruptcy will not absolve any existing debt from personal accounts and vice versa.

Potential Legal Issues When Starting a New Business after Bankruptcy

Another key consideration when filing for bankruptcy is its future effects. If you intend to start a business in the future, the financial decisions you make now could play a role.

Depending on the type of business you wish to create, you may be required by law or policy to disclose any prior bankruptcies or debt issues that could potentially negatively affect your ability as an owner or operator.

In addition, certain lenders may refuse loans or other forms of financing due to your past financial issues. This is the case regardless of whether they directly relate to the new business venture itself.

Ultimately, deciding whether or not filing for personal bankruptcy is right for you requires serious thought and planning. This decision cannot be reversed and it has long-term complications.

Although it may seem like an appealing option to start fresh financially speaking, it also comes with its own set of risks and implications. They should not be taken lightly. This is especially true when considering how the decision affects your business now or any potential future business opportunities.
Before taking action one way or another, make sure you explore all available options. This allows you to make an informed decision about what direction would best serve both yourself and your business interests long-term.

For more information or to speak to someone who can help you protect your business if you’re considering bankruptcy, contact the Law Offices of Robert M. Geller at 813-254-5696 to schedule a free consultation with an experienced attorney.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Can You File Bankruptcy on a Title Loan?

If you're struggling with debt and have a title loan, you may wonder if bankruptcy can help you escape that...
Read More

Will Bankruptcy Affect My Security Clearance?

When you're facing financial difficulties, the prospect of bankruptcy can be daunting. This concern is amplified if you hold or...
Read More

What is Involuntary Bankruptcy?

Bankruptcy is a legal process that allows individuals or businesses to resolve their debts under the protection of a bankruptcy...
Read More

Is It Bad to File Bankruptcy at a Young Age?

Filing for bankruptcy is often viewed as a last resort for those overwhelmed by debt. While it is a significant...
Read More

How Far Back Does the Bankruptcy Trustee Look?

Filing for bankruptcy is a complex process that requires full transparency and cooperation with the bankruptcy trustee assigned to your...
Read More

Can Bankruptcy Be Reversed?

Bankruptcy is a legal process designed to help individuals and businesses eliminate or repay their debts under the protection of...
Read More

Can I Sell My House While in Bankruptcy?

Filing for bankruptcy can be a complex and stressful experience, especially when it comes to your significant assets like your...
Read More

Does Bankruptcy Clear Attorney Debt?

Filing for bankruptcy is a complex process that often requires the expertise of a bankruptcy attorney to navigate successfully. However,...
Read More

What to Ask a Bankruptcy Attorney?

Deciding to file for bankruptcy is a significant and often emotional step, and having the right legal guidance is crucial...
Read More

How Can I File Bankruptcy with No Money?

Filing for bankruptcy is often seen as a last resort for those overwhelmed by debt. It's a step that provides...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.536.4468

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 328-6667
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 274-9155

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 492-2663

Map And Directions