You are overwhelmed with personal debt and are considering filing for Chapter 7 or Chapter 13 bankruptcy; but you are worried that in doing so, you will be unable to get a small business loan in the future. This is a legitimate concern, but it is important to remember that while bankruptcy might financially complicate some things, it does not necessarily prevent you from securing a loan.
There are a few factors that will increase your chances of getting the financing you need for your small business.
First, you will need a comprehensive business plan that meticulously outlines present and future operations. In addition, the plan should include information about costs and predicted profit that strengthens the lender’s security in granting funds.
Second, it is generally best to first approach the financial institution to which you have fulfilled your repayment obligations. This institution knows you as a businessperson and has confidence in you since you already have an established track record.
Third, depending on when you need the loan, it is usually best to wait until after your personal bankruptcy has been discharged before you apply. It is also important to know that there are non-traditional forms of financing available, such as asset-based financing that is secured by your business property and/or equipment.
Finally, and most importantly, be persistent. Do not become discouraged if you are initially declined. Small business financing options are available, even in the wake of personal bankruptcy.
For many, filing for bankruptcy can be a fresh financial start and a new beginning where a past debt is psychologically and realistically behind you. We understand that filing for bankruptcy is a big step, and you probably have many questions and fears. The experienced bankruptcy team at the Law Firm of Hoskins, Turco, Lloyd & Lloyd will walk you through the process, address your concerns, and guide you to the debt solution that makes the most sense for you and your family.
To schedule a free consultation at one of our four Hoskins, Turco, Lloyd & Lloyd locations in Port St. Lucie, Vero Beach, Fort Pierce, or Okeechobee, call 866-460-1990.