{"ok":true,"canonical_url":"https://dealroom.so/glossary/undischarged-bankruptcy","api_url":"https://dealroom.so/api/public/glossary/undischarged-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":"undischarged-bankruptcy","term":"Undischarged Bankruptcy","group":"Reading the business","definition":"A bankruptcy case still open and not yet finalized by the court. For buyers, an undischarged bankruptcy for the seller or key principals is a significant red flag that can prevent SBA loan approval.","what_it_means":"If a seller or any key principal has an undischarged bankruptcy, it generally makes the business ineligible for an SBA 7(a) loan. This signals high financial risk to lenders. You need to verify the bankruptcy status of all key individuals involved in the seller's business during due diligence.","url":"https://dealroom.so/glossary/undischarged-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":"derogatory-mark","term":"Derogatory mark","url":"https://dealroom.so/glossary/derogatory-mark"},{"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"}],"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":"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":"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 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 — Undischarged Bankruptcy","url":"https://dealroom.so/glossary/undischarged-bankruptcy","source_type":"DealRoom Data"}}