I'm interested in taking over an existing well establish laundromat business. However, I recently filed for bankruptcy based on misused of credit cards in college while earning minimum wage. My fiancee has great credit but we don't have any home equity to make a 10% down payment. I'm currently employed as a PC tech making 25k/yr and I can probably afford a $5000 down payment. I know that they're companies that are now approving ppl that filed for bankruptcy. I'm looking for one that would be willing to take a chance with this investment. Any leads or reccommended companies?

The figures are as followed:

Laundromat
Location New Jersey,United States
Asking Price Range $250K - $500K
Gross Revenues $208000
Net Profit / Cash Flow $88400
Cash Flow Type Sellers Discretionary Cash
Seller Finance Not Disclosed
Year Established 1998
Number of Employees 1 - 3
Relocatable Not Disclosed
Number of Employees 1 - 3
Real Estate Leased
Reason for Sale Owner is relocating.
Description A Union County Laundromat Business located in a residential area on a major thoroughfare and is situated in walking distance to many apartments and other multi family dwellings. Although the company is primarily a Laundomat it derives income from a variety of sources, a wash n fold, dry cleaning, detergent and supply sales, vending machines, Lottery ticket sales, and pick up and delivery service. Real Estate is also available for $300k. Contact for more information on this Laundromat business for sale.

Well, you've got 2, maybe 3 strikes here. Strike 1 - recent bankruptcy. Strike 2 - laundromat (most lenders aren't comfortable lending to laundromats because of environmental issues). Strike 3 - combination of no down-payment, poor liquidity, collateral etc. Your best bet is seller financing. Sometimes sellers will carry a note for a little while to facilitate the transaction and get you established. In a couple of years you can improve your credit, try to increase the cash flow and try for conventional financing.

I can take the loan out under my fiancee's name so bankruptcy is not the problem.
It's the down payment. Are there any alternatives ways to make a down payment with poor liquidity, collateral etc? By the way, what are the benefits and how does seller financing work? I did try searching the forums for that answer.

My guess is...
The seller agrees to let the buyer make a down payment of a certain amount then an agreement is signed stating that the buyer will continue to pay the seller the remaining balance.

Is that right?

Yes, you got it. Usually the terms are favorable and the costs are minimal comparted to bank loans.