{"ok":true,"canonical_url":"https://dealroom.so/glossary/chapter-13-bankruptcy","api_url":"https://dealroom.so/api/public/glossary/chapter-13-bankruptcy","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":"chapter-13-bankruptcy","term":"Chapter 13 Bankruptcy","group":"People and paperwork","definition":"A type of bankruptcy allowing individuals with regular income to repay debts over three to five years. This is a red flag for SBA lenders, as it indicates past financial distress.","what_it_means":"The SBA will not approve a loan if an applicant, or any Principal, is currently in a Chapter 13 Bankruptcy. It must be Discharged and demonstrate a period of re-established creditworthiness. Lenders need assurance of your ability to manage debt responsibly.","url":"https://dealroom.so/glossary/chapter-13-bankruptcy","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"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"bankruptcy","term":"Bankruptcy","url":"https://dealroom.so/glossary/bankruptcy"},{"slug":"discharged-bankruptcy","term":"Discharged (Bankruptcy)","url":"https://dealroom.so/glossary/discharged-bankruptcy"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"slug":"derogatory-mark","term":"Derogatory mark","url":"https://dealroom.so/glossary/derogatory-mark"}],"related_questions":[{"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 the SBA define an \"associate\" for affiliation purposes under 13 CFR 121?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-define-an-associate-for-affiliation-purposes-under-13-cfr-121"},{"question":"How does SBA define an 'associate' for affiliation purposes under 13 CFR 121, impacting size determination?","url":"https://dealroom.so/for-lenders/questions/how-does-sba-define-an-associate-for-affiliation-purposes-under-13-cfr-121-impacting-size-"},{"question":"How does the SBA define an 'associate' for affiliation purposes under 13 CFR 121, beyond direct ownership?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-define-an-associate-for-affiliation-purposes-under-13-cfr-121-beyond-dire"},{"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 — Chapter 13 Bankruptcy","url":"https://dealroom.so/glossary/chapter-13-bankruptcy","source_type":"DealRoom Data"}}