# Equipment Financing After Bankruptcy

Canonical URL: https://fundmyequipment.com/learn/credit-tier/recent-bankruptcy/
Last modified: 2026-05-29T19:39:17+00:00
Type: efin_credit_tier

## Summary

Equipment financing after Chapter 7 or Chapter 13 bankruptcy. Discharge timeline expectations, lender programs, rebuilding strategy.

## Content

Recent business or personal bankruptcy disqualifies most prime equipment financing. Specialty lenders have post-bankruptcy programs with specific waiting periods. The clock starts at the discharge date.

Standard waiting periods
Bankruptcy typeTypical wait for sub-primeTypical wait for prime
Chapter 7 (liquidation)1-2 years post-discharge4+ years
Chapter 11 (business reorganization)1-2 years post-confirmation3-5 years
Chapter 13 (individual reorganization)While in plan + on-time payments, some lenders consider2+ years post-discharge


What lenders look at post-bankruptcy

Time since discharge: longer is better
Reason for bankruptcy: "circumstances beyond control" (medical, divorce, recession) treated more leniently than business mismanagement
Post-discharge credit rebuilding: new tradelines, on-time payments, low utilization
Current business cash flow: strong revenue covers many sins
Personal financial discipline: savings, paydown of remaining debt


Within the waiting period
If you need equipment urgently and are within the standard waiting period:

Some Chapter 13 debtors-in-possession can get equipment financing with court approval
Specialty post-bankruptcy lenders may approve with 25-40% down and shorter terms
A co-signer with prime credit can sometimes bridge
Equipment rental or lease (with a different lessor not affected by your bankruptcy) may be available


Rebuild path

Discharge: get your final discharge order. Keep copies.
Open small new tradelines: secured credit card, small business line. Pay on time.
Open vendor accounts: Uline, Quill, Grainger; pay net-30 or net-15.
Build savings: 3-6 months of business operating expenses in reserve.
After 12 months: attempt sub-prime equipment financing with strong down payment
After 24-36 months: better rates available as bankruptcy ages out


What we do
We route post-bankruptcy applications to lenders with explicit post-bankruptcy programs. Tell us about the bankruptcy in the application notes. We will set realistic expectations on terms before submitting.

Apply at /apply/.