I advise a different rank of priorities. If you can start a company now, do it, even if you have a ton of credit card debt or are way under water on a mortgage. This is exactly what bankruptcy is for. It does society no damn good to have you working for the next ten years to stay current on a mortgage for more than your house is worth. That mortgage represents misallocated capital - this is both your fault and the bank's fault. Dedicating the next ten years of your productive life to paying it off doesn't make that capital any less misallocated from the societal perspective. Much better to build something valuable for people in that time. This is what bankruptcy is for.
ah. Well, then I guess it would depend on if I thought you went through bankruptcy because you started a company without a corporation and it crashed, or if I thought you went through bankruptcy for personal reasons. The latter, in my mind, would pretty much disqualify you, as it suggests you are not good with money.
The former is just fine, assuming you can get me to believe you. (but convincing me of this would be difficult. Everyone with a shopping problem would like to think they were really 'investing' Financial records from the failed company would help a lot, and would provide evidence you are good with money.)
Of course, I invest in my own companies, not in other people's companies, so my opinion may not be representative.
Oh, also, especially if you are young, it will matter a lot less as you get older. We all can relate to doing irresponsible things when we were young.
The bankruptcy would largely be a result of funding a web startup years ago with credit cards after having used up savings. The expenses were food and rent and the like.
