{"ok":true,"canonical_url":"https://dealroom.so/glossary/discharged-bankruptcy","api_url":"https://dealroom.so/api/public/glossary/discharged-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":"discharged-bankruptcy","term":"Discharged (Bankruptcy)","group":"People and paperwork","definition":"A legal release from most debts after a bankruptcy proceeding. While discharged, a bankruptcy on your record can still impact your eligibility for an SBA loan.","what_it_means":"If you've had a bankruptcy, the SBA requires it to be Discharged. Even then, you must demonstrate strong credit rebuilding and a sound repayment capacity. Lenders will look closely at the circumstances and your financial behavior since the discharge.","url":"https://dealroom.so/glossary/discharged-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":"chapter-13-bankruptcy","term":"Chapter 13 Bankruptcy","url":"https://dealroom.so/glossary/chapter-13-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":"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 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":"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"}]},"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 (Bankruptcy)","url":"https://dealroom.so/glossary/discharged-bankruptcy","source_type":"DealRoom Data"}}