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Personal bankruptcy may not hamper ability to get business loan

On Behalf of | Jul 26, 2018 | Personal Bankruptcy |

Sometimes, consumers determine that their dire financial situations warrant drastic action. They therefore decide to file for personal bankruptcy. The good news is that, just because people file for bankruptcy in Pennsylvania, does not mean they cannot get loans if they are aspiring entrepreneurs.

Milton Hershey, Henry Ford and Walt Disney are all examples of entrepreneurs who failed miserably before succeeding. Aspiring business owners who have filed for Chapter 13 or Chapter 7 bankruptcy — two forms of bankruptcy available to individuals — can do the same today. The reason that bankruptcy may not necessarily hamper a person’s ability to get a business loan is that lenders still want these individuals’ business, so options likely exist for them.

However, those interested in business loans are usually eligible for them only if their bankruptcies have been discharged. An open bankruptcy can generate problems for a lender due to the involvement of the court in the distribution of the consumer’s assets to his or her creditors. For this reason, ensuring that one’s bankruptcy is discharged and that this has been recorded on one’s credit report is essential.

Filing for personal bankruptcy may be just what a business owner needs to break free from the bondage of overwhelming debt and leave their woes behind. Through this type of bankruptcy filing, consumers can start fresh on the path to financial freedom and success. An attorney in Pennsylvania can walk financially struggling consumers through the process, ensuring that their best interests are protected each step of the way.