One of the problems with bankruptcy is there is still a stigma attached to it. It is often perceived that if a person goes bankrupt that they either didn’t want to pay their bills, or they aren’t trustworthy with money. This is more thought of with personal bankruptcy compared to business bankruptcy. However, no matter what the perception is it is it can be difficult for an individual who has had a business go bankrupt to get credit.
It depends on whether you were personally liable for the debt of the business. There are a few factors that are taken into account. This includes the type of business it was, if you guaranteed the debts personally and if and what type of taxes were owed.
There are several different forms of business entities such as sole proprietorship, partnerships and limited or corporate companies. Which type of these concerning your bankruptcy will partially determine how difficult it will be for you to get credit after the business has gone bankrupt?
You will want to discuss all of the details about what may happen including your credit rating following business bankruptcy with your Houston bankruptcy attorney. It is important to have this type of legal help to ensure your bankruptcy goes smoothly. If your bankruptcy does affect your credit you may find that you are still able to borrow but with much stricter terms, and perhaps for less money that you were hoping for.