{"ok":true,"canonical_url":"https://dealroom.so/glossary/discharged","api_url":"https://dealroom.so/api/public/glossary/discharged","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":"discharged","term":"Discharged","group":"Doing the deal","definition":"In bankruptcy, \"discharged\" means a court has legally released you from most debts. It's important for buyers because a discharged bankruptcy shows you've completed the process, which is better than an ongoing one.","what_it_means":"If you have a past bankruptcy, lenders prefer it to be fully discharged, meaning the legal process is complete and the debts are resolved. An undischarged or ongoing bankruptcy is typically an automatic disqualifier for an SBA 7(a) loan. Provide all relevant documentation to your lender.","url":"https://dealroom.so/glossary/discharged","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":"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":"bankruptcy-filing","term":"Bankruptcy filing","url":"https://dealroom.so/glossary/bankruptcy-filing"},{"slug":"derogatory-mark","term":"Derogatory mark","url":"https://dealroom.so/glossary/derogatory-mark"},{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"}],"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":"What if an applicant business owner has a recent felony conviction that has been discharged?","url":"https://dealroom.so/for-lenders/questions/what-if-an-applicant-business-owner-has-a-recent-felony-conviction-that-has-been-discharge"},{"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"}]},"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 — Discharged","url":"https://dealroom.so/glossary/discharged","source_type":"DealRoom Data"}}