While effective at eliminating overwhelming amounts of debt, filing bankruptcy is not a decision to make lightly, as it can impact many areas of your life. Fortunately, it won’t limit your entrepreneurial opportunities since the law recognizes the need for debtors to continue earning a living. However, launching any new business venture can be difficult, especially if you recently filed for bankruptcy. Here’s what you should know if you’re looking to start a business after declaring bankruptcy. 

3 Tips for Business Owners Launching a New Venture After Filing for Bankruptcy

1. Securing Funding Can Be Challenging 

The biggest challenge to starting a new venture after filing bankruptcy is securing funding to get your business off the ground. Having a bankruptcy on your credit report will make it hard to get approved for a loan. Focus on launching a business that requires minimal capital, or ask a friend or family member for a personal loan.

2. You Need a Solid Business Plan 

Writing a solid business plan can help improve your chances of getting approved for financing. In your business plan, explain to lenders exactly what type of business you wish to start and provide them with an analysis of industry profitability and projections. Include research you’ve done on the location and budget for your new venture, as well as demand for your product or service.

3. You May Not Be Approved to Take on More Debt 

In some cases, you may need permission from a bankruptcy court to acquire more debt to launch a business. They often don’t want you to take on new loans before your current financial obligations have been completely discharged. Neglecting to consult with a court can result in your bankruptcy case being dismissed. 

If you’re thinking about starting a business after filing bankruptcy, you should consult a qualified bankruptcy lawyer. Mark Briden Law in Shasta County, CA, can help you navigate bankruptcy law and the court system. Attorney Briden offers more than 20 years of experience assisting debtors to get their finances on track and can help you reach your business goals. He offers free consultations over the phone or in his office, as well as payment plans for his clients. Call (530) 222-1664 to discuss your business, or visit his website to learn more about his legal services for individuals filing bankruptcy.