' Can Personal Bankruptcy Affect My Business? - Law Offices of Robert M. Geller, P.A.

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.


Video Testimonials

Tampa Bankruptcy Law Blog

Can I Lose My House If I File for Bankruptcy

The potential loss of your house when filing for bankruptcy depends on various factors. These include the type of bankruptcy...
Read More

What Can You Write Off in Bankruptcy?

Many people filing for bankruptcy aren’t sure what debts can be discharged, or "written off," through bankruptcy. It’s important to...
Read More

How Often are Bankruptcies Denied?

Bankruptcy offers a lifeline for people drowning in debt. It provides a chance to start anew and regain financial stability....
Read More

How Much Debt Should I Have Before Considering Bankruptcy?

Dealing with overwhelming debt and financial hardship is difficult. The prospect of bankruptcy may offer a path toward relief, as...
Read More

How Long Does Chapter 7 Bankruptcy Take to Discharge?

Chapter 7 bankruptcy offers a fresh start and a path toward financial stability for people struggling with debt. But when...
Read More

Does Business Bankruptcy Affect Personal Credit?

Does Business Bankruptcy Affect Personal Credit? For entrepreneurs and business owners facing financial challenges, the prospect of business bankruptcy can...
Read More

Can I Get an Apartment After Filing for Bankruptcy?

Filing for bankruptcy often feels challenging and overwhelming. It also raises a variety of concerns. One of the most common...
Read More

Are SBA Loans Dischargeable in Bankruptcy?

Navigating the complexities of Small Business Administration (SBA) loans and bankruptcy can be a daunting task for many business owners....
Read More

How to Get Bankruptcy Off of Your Credit Report

Rebuilding financial health after bankruptcy is challenging, but that doesn’t mean filing is worth the effort. One common concern for...
Read More

What Happens When You File for Bankruptcy?

Contemplating bankruptcy is a significant decision that comes with many questions. If you're considering filing for bankruptcy, it's essential to...
Read More


For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More


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


Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
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) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions