Many people believe that filing for personal bankruptcy will make it impossible for them to start a business and become financially independent after their debts have been discharged. Often, bankruptcy debtors will discover that the exact opposite is true. With some discipline and good advice, entrepreneurs can find that starting a business and securing financing is much easier after a bankruptcy than it would have been if they had tried to resolve their debts without filing for personal bankruptcy. Three such entrepreneurial success stories have been outlined in a recently published online editorial post, and they are great examples of the ways for entrepreneurs to start and run a successful business after discharging debts through bankruptcy, while also rebuilding their credit.
After a bankruptcy, it can be difficult for someone to be approved for a credit card, but responsible credit card use is one of the best ways to build credit, so what can be done? A secured credit card can be a helpful way for someone to rebuild their credit after a bankruptcy.
With a secured credit card, it is much easier to gain approval, although it requires a collateral deposit that functions to cover the credit line for the card. Since the card user makes charges and pays the bills on time, they may be able to deposit more in the account to add more credit, and sometimes a bank will increase the credit line without requesting additional deposits. Using a secured credit card can allow someone to gain more and more credit over time, and it can eventually help an entrepreneur to be offered unsecured credit for a business loan to help with business expenses. Users of secured credit cards must be diligent about keeping their balances under the credit limit and paying their bills on time, or else using the card will not help them rebuild their credit.
Obtaining Credit from Other Sources
After using secured credit cards for long enough, people who previously filed for bankruptcy will be able to find other sources of credit, including car loans, unsecured credit cards, business loans, or even a mortgage. Entrepreneurs that are looking to rebuild their credit quickly should jump at the opportunity to be extended credit, as long as they will be able to make all the payments on time and remain responsible with their finances. As business owners take advantage of credit offers extended to them and successfully show that they are good for the money, they will see more credit offers coming their way and eventually have strong credit, often better than their credit was even before they incurred the debt that resulted in their filing for bankruptcy.
Are You Ready to Start Rebuilding Your Credit?
If you or a loved one is struggling with debt and thinking about bankruptcy, it is possible to have excellent credit after filing for bankruptcy. The Louisville and Southern Indiana bankruptcy attorneys at the Schwartz Bankruptcy Law Center can advocate in your best interests and help you get on the road to financial independence. If you have a dream of becoming a successful entrepreneur but are afraid your current debt will prevent you from ever getting a business loan, get started down the path to having strong credit and contact a qualified bankruptcy attorney to discuss your options. At the Schwartz Bankruptcy Law Center, we advise and represent clients in various bankruptcy proceedings, and with our experience you can decide which course of action works best for you. We can help you get back on track. Call 866-366-3328 today to schedule a risk-free consultation or contact us through our website.
More Blog Posts:
Seventh Circuit Court of Appeals Affirms Lower Rulings Denying Discharge of Student Loan Debt, Kentucky Bankruptcy Lawyers Blog, published August 1, 2015.
Ninth Circuit Affirms Dismissal of Pro-Se Debtor’s Bankruptcy Petition for Failure to Meet Deadline, Kentucky Bankruptcy Lawyers Blog, published August 17, 2015.