Does a business bancruptcy affect personal buying?

[Mary Jay]

Hi guys,

I have a good credit and have few properties (couple are in my name and few are in LLC's names)

I have always wanted to open my own business but scared that if my business goes south it will prevent my ability to buy real estate in my personal name...

So, if things dont go well with my business, and God forbid, I have to do a business bankruptcy,(lets say chapter 7) will that bankruptcy put me into a position that I cant qualify for a personal real estate loan?

How to prevent that from happening? The fear of not being able to buy real estate is holding me from opening my own business...

Unfortunately, for the kind of business that I want I have to get a business loan...

Help please!

[Stephanie P.]

@Mary Jay

If your credit is good now, buy income producing real estate.  That way, if your business takes a hit, you may be able to weather the storm.  Credit is a snapshot of your past so if you've had a good track record, the assumption is you'll continue.

I would be concerned about starting a business with such trepidation and thoughts of failure.  You may want to continue what you're currently doing or start small with the business rather than incurring debt and jumping in the deep end.

All the best

Stephanie