While bankruptcy can help to clear away debts and allow an individual to gain a fresh start, it does come with difficulties post bankruptcy. One difficulty that people face is that of starting a new business. Because your credit score is so low, finding finance for your new venture may be impossible. If you can fund it from your own pocket, you may still face problems from suppliers, with many insisting on either payment prior to delivery, or payment on delivery.
There are no legal issues with starting a new business. In fact, you can technically commence a new business the day after your bankruptcy discharge. While your credit score will be low, you may find that you can build your business’ credit score fairly quickly. You will need to ensure that all financial transactions are carried out in the business’ name so that the business receives the benefit of a good payment history.
You could also consider going into business with a partner, preferably someone who already has a good credit score. They may have better luck obtaining funding for the business. The downside is that neither you nor the business receives any benefits from a successful payment history. You could also check with the US Small Business Administration – they often have programs designed to help people get a start in their own business.
Anyone can start a business after bankruptcy. However, you may find that credit is hard to obtain. A little perseverance and you can succeed, thousands have before you.