{"ok":true,"canonical_url":"https://dealroom.so/glossary/bankruptcy-discharge","api_url":"https://dealroom.so/api/public/glossary/bankruptcy-discharge","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"bankruptcy-discharge","term":"Bankruptcy discharge","group":"People and paperwork","definition":"A court order that releases a debtor from personal liability for most debts included in a bankruptcy filing. It's a critical factor for your eligibility as an SBA loan borrower.","what_it_means":"If you've had a bankruptcy, the lender will need to see proof of discharge, typically a court document, to ensure the bankruptcy is fully resolved. A recent discharge or ongoing bankruptcy can complicate or prevent SBA loan approval, as it impacts your creditworthiness and ability to repay.","url":"https://dealroom.so/glossary/bankruptcy-discharge","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"bankruptcy","term":"Bankruptcy","url":"https://dealroom.so/glossary/bankruptcy"},{"slug":"discharge","term":"Discharge","url":"https://dealroom.so/glossary/discharge"},{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"slug":"personal-judgment","term":"Personal judgment","url":"https://dealroom.so/glossary/personal-judgment"}],"related_questions":[{"question":"How does having a past personal bankruptcy that has been discharged affect my eligibility?","url":"https://dealroom.so/sba-7a/questions/how-does-having-a-past-personal-bankruptcy-that-has-been-discharged-affect-my-eligibility"},{"question":"How does a prior personal bankruptcy, now discharged, impact my SBA 7(a) loan application?","url":"https://dealroom.so/sba-7a/questions/how-does-a-prior-personal-bankruptcy-now-discharged-impact-my-sba-7-a-loan-application"},{"question":"Will a past bankruptcy (e.g., Chapter 7 discharged 5 years ago) automatically disqualify me from an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/will-a-past-bankruptcy-e-g-chapter-7-discharged-5-years-ago-automatically-disqualify-me-fr"},{"question":"How does a personal bankruptcy from five years ago, now discharged, impact my eligibility for an SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/how-does-a-personal-bankruptcy-from-five-years-ago-now-discharged-impact-my-eligibility-fo"},{"question":"What if I have declared personal bankruptcy in the past?","url":"https://dealroom.so/sba-loans/basics/what-if-i-have-declared-personal-bankruptcy-in-the-past"},{"question":"How does a prior personal bankruptcy impact SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-7a/questions/how-does-a-prior-personal-bankruptcy-impact-sba-7-a-loan-eligibility"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Bankruptcy discharge","url":"https://dealroom.so/glossary/bankruptcy-discharge","source_type":"DealRoom Data"}}