Filing for bankruptcy although stop repossession of your home, assets and automobiles also it restores utility services and continuous harassment for debenture holders and creditors, but it vanishes your market image and goodwill. Life after bankruptcy becomes very difficult especially when you want to go for taking financial assistance from banks, financial institutions or market. No individual or company will trust any person who recently comes out of bankruptcy. Usually Bankruptcy Help last in three years, but when you think to start a fresh business after overcoming from bankruptcy it becomes very difficult.

Starting a fresh business after bankruptcy

Starting a new business after bankruptcy is very challenging task although there is no rule which stop a person to start a new business in chapter 7 and chapter 13. Owner can start same business or he may operate business under the same name, same partners, but it is advisable to start a new business with a new name than using the old. New business with new name is better because old name may create negative credit image to your clients and other parties of the new business.

Brand name-

If the old brand name have significant amount of goodwill, then using old brand name is a better idea rather than giving it a new name. Before using old brand name with which you have been declared bankrupt, it recommended to consult with experts and lawyers and consider their advice. An expert or lawyer is an indispensable resource in helping and determining the rules and regulations regarding businesses. A better knowledge of Chapter 7 and Chapter 13 Bankruptcy is preferable before you start a new business after bankruptcy. In the initial stages of new business it is recommended to invest as less money as possible to avoid risk of failure and to get the business comes on right track. Soon after you develop existing level of brand image and faith among clients you can move further with large investments. To build same level of business credit and to ensure a positive cash flow is equally important as existence of business become very difficult without raising debts. A correct proportion on debt and equity in capital is important for success of business enterprise. As debts are cheapest source of raising capital from market. Raising excessive capital from debts can prove to be quite risky as it reduces control of proprietor on business.