Getting a Business Loan after Bankruptcy

: Reese Baker & Associates

  Filed under: Loans

loanIndividuals that are filing for bankruptcy not only have to consider what this action is going to do for them here and now but in the future as well. It is most likely your personal bankruptcy is going to remain on your credit report for at least seven years and maybe up to ten.

While you may not even want to consider borrowing money following your bankruptcy, seven to ten years is a long time, and it may be that you will want to try your hand at business again. In order to do so you may need to obtain a business loan.

This is not going to be easy. Some lenders may not want to take a risk with you because of your previous bankruptcy. Then on the other hand you may be less of a risk than you think. You will not be able to file for bankruptcy again for a certain number of years, so in essence your potential lenders may see this as being less of a credit risk.

In any event you need to be prepared for some opposition regarding potential lenders and your bankruptcy. Make sure you explain what the circumstances were at the time of your bankruptcy, and how they have changed now.

Make sure that you carefully monitor your finances after your bankruptcy so you do not end up in a financial problem again. You can ask your Houston bankruptcy lawyer to explain what your situation may be like following your bankruptcy pertaining to your credit report and the general view potential lenders may have. In fact, your Houston bankruptcy lawyer can even help rebuild your credit so it is worth taking the time to develop a solid plan for your borrowing future.