CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Is a Business Loan Possible If I File for Bankruptcy?

Business Loan After Bankruptcy Tampa, St Petersburg, And Pasco Florida.Filing for Bankruptcy

Filing for bankruptcy might make it seem as if your world has stopped, but the truth is it hasn’t. Life goes on, even after bankruptcy, and before you know it you’ll be thinking about your future and the opportunities that are ahead of you.

As a matter of fact, many people opt for bankruptcy to open the door to these opportunities.

However, it’s important to understand that as much as bankruptcy can help you, it’s also possible it will interfere with some of your plans, at least on a temporary basis. Bankruptcy will have an effect on your ability to borrow money and do some things you might otherwise have been able to do had you experienced no financial struggles.

In some cases, launching a small business might be one of these things.

Filing for personal bankruptcy could have a bearing on your ability to secure a small business loan in the future.

What do you need to know if you are considering business ownership – or you already are a business owner – but right now you’re struggling financially and considering bankruptcy?

Bankruptcy Timing is Important

Filing for bankruptcy has a long-term effect on your finances and credit, but it isn’t permanent.

If you filed for bankruptcy several years ago and you’re considering a small business loan, you’re likely better off waiting until the bankruptcy has dropped from your credit. In most cases, this is 10 years after the bankruptcy was completed.

Of course, 10 years is a long time and not everyone with business aspirations is willing or able to wait that long. If this applies to you and you’re ready to take the leap into business ownership, but you have concerns about a previous bankruptcy, you might want to consider:

  • Applying for a loan with a financial institution with which you’ve already established a relationship. If you have a checking or savings account at a bank that offers small business loans, this is the way to go. It’s no guarantee you’ll be approved, but being an existing customer improves your chances because you won’t be judged strictly by your credit report.
  • Securing asset-based financing. This non-traditional means of financing is secured by your business property, so lenders are more willing to work with you because they can reduce their risk. This puts your business at risk if you struggle financially, but it allows you to get the money you need to start or grow your business, assuming you have assets you can use as collateral. To learn more about the variety of lending options available to business owners, check out this information from Entrepreneur.com.
  • Creating a solid business plan. The more detailed the better. Make sure the plan includes information for how it will operate, what it will cost to open or expand, and how much profit it is expected to make and when.

Unfortunately, there’s no guarantee that you’ll be approved for a small business loan after bankruptcy, but there’s no guarantee of approval even without a bankruptcy on your credit history. It’s still important to speak to your bankruptcy attorney and be open and honest about your plans to one day open a business or to expand your existing business. Your attorney can take these aspirations into account and help you plan your best bankruptcy strategy.

For more information or to speak to someone about questions you have related to bankruptcy and business ownership, contact the Law Office of Robert M. Geller at 813.254.5696 to schedule a consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

What to Do Now If You Intend to File for Bankruptcy Next Year

If you intend to file for bankruptcy in the New Year, there are certain steps you must take to ensure...
Read More

5 Lessons You’ll Learn from Filing for Bankruptcy

Looking for a bankruptcy lesson plan? Here are five things you can learn from filing for bankruptcy. Filing for bankruptcy...
Read More

3 Big Bankruptcy Stories from 2022

Bankruptcy is a serious financial decision that can have long-lasting effects. This is true even for multi-million dollar businesses. In...
Read More

5 Questions You Should Ask Before Filing for Bankruptcy

If you're considering filing for bankruptcy, it's important to know what you're getting into. What questions should you ask before...
Read More

Top 5 Reasons to File for Bankruptcy

What are the most common reasons to file for bankruptcy? There are many valid reasons for filing for bankruptcy. According...
Read More

5 Lessons Learned from Filing for Bankruptcy and How to Avoid the Biggest Financial Mistakes

People struggling with the biggest financial mistakes often consider filing for bankruptcy. Bankruptcy can provide relief from overwhelming debt. However,...
Read More

Things to Bring Along to Your Bankruptcy Consultation

Are you considering filing for bankruptcy? If so, one of the most important steps is to consult with an attorney...
Read More

Do You Need a Chapter 7 Bankruptcy Document Checklist? 3 Things You Need to Know

Filing for bankruptcy requires organization. A chapter 7 bankruptcy document checklist can make the process easier. No one ever plans...
Read More

Will a Bankruptcy Document Preparer Save Me Money?

While it may seem like hiring a bankruptcy document preparer will save you money in the short term, this is...
Read More

Robert Geller Shares Advice for People Considering Mortgage-Modification Programs

Robert Geller’s co-authored article “Can Debtors Afford Mortgage-Modification Programs?” was recently featured in the fall 2022 edition of the Consumer...
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

813.254.5696

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