One of the worst things that can ever happen to a thriving business is an unforeseen challenge that can result to bankruptcy. A sad fact of the matter, business bankruptcies have been the forefront of news channels all over the world, what with the recent economic turn down affecting even the staunchest businesses. When a company goes bankrupt, its business owners go through a strenuous process of filing for bankruptcy and settling court cases in order to shut down with dignity still somewhat intact, although scathed.
One of the most difficult things to recover or resuscitate after a business bankruptcy is business credit. When your business credit history has been tainted by the records leading up to bankruptcy, going through the process of getting a new credit card can be difficult and challenging. However, it is not an impossible task.
What Happens After Credit Card Bankruptcy?
The first thing that you’ll need to do is to hire the services of a bankruptcy lawyer so that together, you can look at your bankruptcy credit and see how your credit history can still be salvaged.
Once your business goes bankrupt and you still owe money from your business credit card, you will have to list down that particular card as debt. If you’re fortunate enough not to have any payables left on that credit card, then all you have to do is give the credit card company a call and notify them of credit card bankruptcy (that is, if they don’t beat you to it first).
In most cases, the credit card company will be agreeable to you keeping your card. Your responsibility as the business credit card owner will be to choose whether or not to do so, depending on your means to pay off any additional debt. Consult your bankruptcy lawyer and seek his or her advice on whether it would be best to proceed as normal or cancel the card altogether.
However, the truth is that getting a credit card after business bankruptcy is not all the arduous. In fact, many business debtors set free from from their previous bankruptcy credit find themselves getting new offers on a different set of credit cards altogether! However, proceed with extreme caution and don’t apply for a new card just because you have been offered it. Look at the terms and conditions first and see if it fits your financial needs and capabilities as a business.
Credit Card Bankruptcy: A Conclusion
The truth is that the declaration of business bankruptcy is no more harmful to your credit history than the financial transactions leading up to it. The bank will be looking at your credit card behavior instead of just focusing on one transaction, which means that your entire card history will be assessed. With a good bankruptcy lawyer, you may be able to rid yourself of a bad bankruptcy credit situation.