{"ok":true,"canonical_url":"https://dealroom.so/glossary/chapter-7-personal-bankruptcy","api_url":"https://dealroom.so/api/public/glossary/chapter-7-personal-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-personal-bankruptcy","term":"Chapter 7 personal bankruptcy","group":"People and paperwork","definition":"This is a legal process where an individual's assets are liquidated to pay off debts, and most remaining debts are discharged. It signifies a complete financial fresh start.","what_it_means":"A prior Chapter 7 personal bankruptcy can significantly impact your eligibility for an SBA loan. The SBA reviews your credit history, including any bankruptcies, to assess your character and repayment capacity. If you have a prior bankruptcy, discuss the details with your lender early to understand potential impacts and any seasoning requirements.","url":"https://dealroom.so/glossary/chapter-7-personal-bankruptcy","official_sources":[{"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"},{"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":"discharge","term":"Discharge","url":"https://dealroom.so/glossary/discharge"},{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"}],"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":"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 past personal bankruptcy prevent me from getting an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/can-a-past-personal-bankruptcy-prevent-me-from-getting-an-sba-7-a-loan"},{"question":"How does a prior personal bankruptcy affect my eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/how-does-a-prior-personal-bankruptcy-affect-my-eligibility-for-an-sba-7-a-loan"},{"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"}]},"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 personal bankruptcy","url":"https://dealroom.so/glossary/chapter-7-personal-bankruptcy","source_type":"DealRoom Data"}}