How Do I Start Over After Bankruptcy?

Are you just out of bankruptcy and looking to start up a new business?

Just because you've had past troubles doesn't mean you are unable to start a business if you know what lies ahead.

Here are some things to know when you go to setup a company after you've declared bankruptcy.

Expect Creative Financing

This is the number one thing that will have to be taken into consideration when you go on to open a business when you've had a bankruptcy. You're going to have to problems getting banks to want to loan you funds after one and you may want to seek alternatives.

For banks:

• Get your business plan together and airtight in its comprehensiveness.

• Get partially funded through investors.

• Consider a partner to include that has good credit

• Seek out smaller more independent banks

Alternatives include:

• Finding a business opportunity that has little to no start-up, such as some service businesses.

• Getting angel investors to help fund your business.

• Go viral and create a kickstarter campaign to help fund your business.

• As a last-ditch effort, and one I wouldn't recommend, you can also get funds from family and friends over a traditional bank.

Sole Proprietors Need New EIN and Tax Numbers

If you are a sole proprietor and was one with the last business venture, you'll need new numbers because in a Chapter Seven you're unable to start a business with the old ones.

While this is just paperwork, it is paperwork you need to remember to do as quickly as you can so that you can get started on the new business.

Corporations and LLCs Take Heed

If you had a Chapter Seven bankruptcy, you didn't receive what is termed a "discharge". If you begin the same LLC or Corporation again, those creditors can reopen the debt and come after you again, just as they did before the bankruptcy.

Keep this in mind if you are trying to keep the same business entity going through a bankruptcy. Talk to an experienced bankruptcy and corporate lawyer about this.

Stay Taxing

You will need to make sure that all property taxes and business taxes are paid in a timely manner, because if not, they will become your liability.

Business taxes will include sales tax and payroll withholding that you'll be collecting and then paying on a monthly basis. These taxes are not difficult to do, but can sometimes slip through the cracks. Being negligent in tax payment can have a bad effect on your business, especially after a Chapter Seven bankruptcy.

As you can see, while it may be a bit more difficult to start up a business when you've a bankruptcy in your past, it isn't insurmountable.

Always keep these things in mind and overcome what you need to so that you can achieve your dream.