Yes.
And many people do.
Bankruptcy does not prohibit you from:
- Starting a new business
- Reopening a closed business
- Forming a new LLC or corporation
- Obtaining a new EIN
There is no “business ownership ban” after bankruptcy.
What Happens If I Want to Restart the Same Business?
You can:
- Form a new entity.
- Operate under a new structure.
- Use a different trade name (if needed).
However:
- Old debts tied to the previous business may still exist unless discharged.
- Vendors burned in the prior business may not extend credit again.
- Reputation repair may take time.
Can I Get Financing Again?
Yes — but timing matters.
Immediately after bankruptcy:
- Traditional bank loans may be difficult.
- SBA loans may require waiting periods.
- Alternative lenders may still lend based on revenue.
As time passes:
- Credit access improves.
- Rates improve.
- Options expand.
Many entrepreneurs secure financing again within a few years.
Does Bankruptcy Disqualify Me From SBA Loans?
Not permanently.
The SBA typically requires:
- Waiting periods after bankruptcy.
- Re-established credit.
- Demonstrated financial stability.
Each situation is reviewed individually.
Is It Smart to Reopen Quickly?
Sometimes yes.
Sometimes no.
It depends on:
- Whether the original business model was viable.
- Whether debt was the only issue.
- Whether market conditions have changed.
- Whether personal guarantees are still outstanding.
A strategic restart is different from repeating the same structure without changes.
The Bottom Line
Bankruptcy is not the end of entrepreneurship.
It is often a reset.
Many successful business owners have filed bankruptcy at some point.
What matters most is:
- Why the business struggled
- What changes moving forward
- How finances are structured next time
Rebuilding is possible.
And in many cases, bankruptcy clears the path to do it correctly.
