Can I Start A New Business After Filing a Chapter 7 Bankruptcy?

Bankruptcy isn’t the end. In fact, the Bankruptcy code was created to provide new beginnings, both for individuals and companies. Whatever you planned to do before you filed for Chapter 7 or 13 bankruptcy is still possible. You may just have to do things a little differently than you had planned prior to bankruptcy.

Here are some tips for starting a business after completing a bankruptcy:

• Choose your business wisely. After bankruptcy, you are going to have a harder time getting loans for a little while, so choose a business model that doesn’t rely heavily on inventory and having a large amount of capital to get started. Home-based businesses and service-oriented business models are a great place to start.
• Find your own funding. Whether you decide to save your own money, find a business partner or investor, or ask friends or family for a loan, make a plan and set goals. If you plan to save the money yourself, set up a separate account and stick to your savings goals. If you decide to borrow money from a friend, family or investor, create a contract and agree to concrete terms of repayment.
• Use your network. You may not have the capital to invest in advertising, but there are plenty of ways to advertise for free. Get your business up on social media. Tell friends and family, and ask them to refer friends and business contacts. Get connected with some nonprofits and build goodwill in the community to help get your name out.
• When you do get credit, use it wisely. Don’t go overboard. Stick to your business plan and don’t act on impulse. Think and plan at least six months ahead, and always stick to your budgets. All businesses go through booms and busts, so plan for the worst and hope for the best.

Over the past 34 years, the Law Offices of Christopher A. Benson has helped over 2,300 of Washington clients take control of their financial situation. We can review whether bankruptcy may help stop your garnishment and address your debts through a repayment plan. Sources: 11 U.S.C. § 362(a)–(d); U.S. Courts: Chapter 13 bankruptcy. If money has already been garnished, recovery may be possible in some cases, depending on the timing of the transfers, applicable exemptions and other legal requirements. A refund is not automatic or guaranteed. Sources: 11 U.S.C. § 547(b)–(c), (e)–(g); 11 U.S.C. § 522(g)–(i); 11 U.S.C. § 550(a). But you have to act quickly–call (253) 815-6940 for your free consultation, or email us today. Evening and weekend appointments available.