{"ok":true,"canonical_url":"https://dealroom.so/glossary/chapter-7-bankruptcy","api_url":"https://dealroom.so/api/public/glossary/chapter-7-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-7-bankruptcy","term":"Chapter 7 bankruptcy","group":"People and paperwork","definition":"This is a type of bankruptcy where a business or individual's assets are liquidated to pay off debts. For a buyer, recent personal or business bankruptcy can impact loan eligibility.","what_it_means":"The SBA reviews a buyer's credit history, and recent bankruptcy filings, especially Chapter 7, are a significant red flag. You'll need to demonstrate financial rehabilitation and stability since the discharge. Lenders will scrutinize the cause and your current financial standing.","url":"https://dealroom.so/glossary/chapter-7-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":"sba-form-1919","title":"SBA Form 1919 — Borrower Information Form","official_url":"https://www.sba.gov/document/sba-form-1919-borrower-information-form","official_label":"View on SBA.gov","authority_tier":4,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sba-form-1919"}],"related":[{"slug":"bankruptcy","term":"Bankruptcy","url":"https://dealroom.so/glossary/bankruptcy"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"},{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"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 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"},{"question":"Can a past bankruptcy prevent me from getting an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-past-bankruptcy-prevent-me-from-getting-an-sba-7-a-loan"},{"question":"Does a past bankruptcy prevent me from getting an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/does-a-past-bankruptcy-prevent-me-from-getting-an-sba-7-a-loan"},{"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":"Can a business with a recent bankruptcy still get an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/can-a-business-with-a-recent-bankruptcy-still-get-an-sba-7-a-loan"}]},"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 7 bankruptcy","url":"https://dealroom.so/glossary/chapter-7-bankruptcy","source_type":"DealRoom Data"}}