{"ok":true,"canonical_url":"https://dealroom.so/glossary/personal-bankruptcy","api_url":"https://dealroom.so/api/public/glossary/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":"personal-bankruptcy","term":"Personal bankruptcy","group":"People and paperwork","definition":"This is a legal process where an individual seeks to eliminate or reorganize their debts. It significantly impacts your creditworthiness and ability to get an SBA loan.","what_it_means":"A personal bankruptcy, especially a Chapter 7 discharge within the last 7-10 years, or an ongoing Chapter 13, can disqualify you from an SBA loan. The SBA requires good character and a strong credit history, so disclose any past bankruptcies upfront.","url":"https://dealroom.so/glossary/personal-bankruptcy","official_sources":[{"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"},{"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":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"slug":"fico-score","term":"FICO score","url":"https://dealroom.so/glossary/fico-score"},{"slug":"derogatory-mark","term":"Derogatory mark","url":"https://dealroom.so/glossary/derogatory-mark"}],"related_questions":[{"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"},{"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":"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 — Personal bankruptcy","url":"https://dealroom.so/glossary/personal-bankruptcy","source_type":"DealRoom Data"}}