Starting new business after Ch 7?

[LeslieF]

I own a small retail business and it looks like a chapter 7 is going to be better for me than a 13. My future employment is uncertain and that is okay. My only concern is that if I decided at some point to go into the same line of work--well, could I? In other words--it would obviously not be fair or legal to close a retail shop with a chapter 7 and turn around and open another one. That I understand. However, what if I decided to open another type of retail store or an online store in the same retail category? Thanks for your advice and experience in advance!

[DeadManCrawling]

You can open another store. Even one in the exact same field as before.

The questions really are:

What has changed, if the same type, that will help it succeed this time?

Can you obtain any financing or vendor credit needed to open, after filing?

Can you survive the start-up period and time until profitability?

Really, all the same questions you went through before, but now you have to navigate the field without access to usual credit channels.

Good luck, I am a business person as well, and though the risks can be high, the rewards and satisfaction have always been worth it.

[Mensa1]

There is nothing to say that you couldn't just keep that business in the Ch 7, and continue to run it as is. If now equity exists, the business wouldd be of no inte4rest to the TT, and it is all yours to do with as you wish. Many times businesses can continue to operate the same biz once stangling debt is stripped away from the guarantor. Often times it is less costly to keep the existing biz, in its presennt form or modified, than to do a whole new start-up.

Now, I am not saying you should do so, just mentioning what is possible in the right set of circumstances. Just make sure that if you get into or stay in that biz, that you have identified the reasons why you weren't successful, with modifications to eliminate a repeat.

[LeslieF]

thank you so much for the info! after a divorce and 2 years of recession hell with future uncertainty--i am done with the business in its current location and model. one idea though would be to take it from its current state (retail store front) and bring it almost completely on line (with an occasional by-appointment arrangement). i am looking at a live-work situation and eliminating almost all of my overhead. i will not have to 'carry' large amounts of inventory either which is a killer for a small retailer these days. my main concern is can i do this and continue to operate under the same name (probably have to have a new corporation tho) and make as much money as i want? my initial consult with the attny left me with the feeling that after filing a chapter 7 i could not go back into the same line of work unless i make under 20K per year or something like that.

[Mensa1]

my initial consult with the attny left me with the feeling that after filing a chapter 7 i could not go back into the same line of work unless i make under 20K per year or something like that.

Not so. Either some disconnect between Attys words and your ears or bad advice from Atty. Either way not a big deal. Easy enough to start up another Corp or operate as a sole proprietor and a dba of a very similar name that you have now; either one will work well.

Good luck going fwd. Low overhead is the key to small biz. GL

[LeslieF]

you have all been extremely informative and encouraging! i have only had one consultation with the attny so i may have not completely understood his advice. i am in the precarious situation of not having enough money to file and so i do not have constant contact to his advice. thanks again. it is great to hear that i can possibly bring my business completely on line with a small storefront if that is the direction i decide to go.