Glossary · People and paperwork
Bankruptcy filing
In short
This is the formal legal process where an individual or business declares inability to repay debts. For a buyer, a past bankruptcy can affect your creditworthiness and SBA loan eligibility.
What it means in a deal
Lenders will review your personal credit history, including any bankruptcy filings, during underwriting. A recent bankruptcy, especially a Chapter 7, can be a major hurdle for SBA loan approval. Be transparent and prepared to explain the circumstances surrounding any past filings.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
SBA Form 1919 — Borrower Information Form
U.S. Small Business Administration · SBA form
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Bankruptcy filing
- How does a recent personal bankruptcy filing affect my eligibility for an SBA 7(a) loan?
- How does the SBA generally treat a 7(a) loan applicant with a prior bankruptcy filing?
- Is a UCC-1 filing sufficient to perfect a lien on business assets?
- If a lender obtains a blanket lien, what are the key UCC filing requirements for interstate operations?
- What if I have declared personal bankruptcy in the past?
- How does a prior personal bankruptcy impact SBA 7(a) loan eligibility?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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