Can I Get Business Funding After Bankruptcy?
Business funding is sometimes available after a bankruptcy is discharged, but options are limited and rates are higher. Most lenders require the bankruptcy to be fully discharged and at least 12–24 months in the past, with rebuilt credit and consistent recent business revenue. During an active bankruptcy, traditional business funding is generally unavailable. This page is general education and not legal or bankruptcy advice, consult a qualified attorney about your specific situation.
Key takeaways
- Active bankruptcies generally disqualify business funding.
- Discharged Chapter 7 / Chapter 13 cases can sometimes qualify after 12–24 months.
- Strong business revenue and rebuilt credit accelerate eligibility.
- Rates and amounts are tighter post-bankruptcy.
- Consult a bankruptcy attorney before taking on new debt.
- Never hide a bankruptcy on an application; it shows on public records and credit.
Who this is for
This page is general education for business owners with a discharged bankruptcy who want to understand their funding options. It is not legal, tax, or bankruptcy advice.
If your bankruptcy is active, do not take on new business debt before speaking with your bankruptcy attorney. Adding debt during an open case can have serious legal consequences.
What you need to qualify
How most BizBee partner lenders treat post-bankruptcy applications:
| Requirement | Typical standard |
|---|---|
| Active bankruptcy | Generally disqualifying |
| Chapter 7 discharged < 12 months | Most lenders decline |
| Chapter 7 discharged 12+ months | Some lenders consider; revenue-driven products only |
| Chapter 7 discharged 24+ months | More options; better rates |
| Chapter 13 in active payment plan | Sometimes considered with court approval |
| Chapter 13 discharged | Treated more favorably than active or recent Chapter 7 |
| Tax / IRS issues alongside BK | Resolved liens / active payment plans help |
Best funding options
Products most likely to approve owners post-bankruptcy:
When this makes sense
- Your bankruptcy is fully discharged and at least 12 months past.
- Your business is generating consistent monthly revenue.
- You have rebuilt credit at least partially since discharge.
- You have spoken with a qualified attorney about adding new debt.
When to be careful
- Your bankruptcy is still active, do not take on new debt.
- You are using new debt to plug a hole that bankruptcy was meant to address.
- A lender pressures you to apply during active proceedings.
- You have not consulted a qualified attorney about implications of new debt.
Discharged bankruptcy? See if any options exist for your business.
BizBee will run a soft-pull review and tell you honestly whether realistic funding paths exist, or what to focus on first.
Frequently asked
Common questions
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