Preheat your oven to 400°F (200°C). Lightly grease a 9x13 inch baking dish – this makes cleanup super easy!
In a large bowl, gently combine the ground meat, 1 cup of shredded cheddar cheese, minced onion, minced garlic, garlic powder, chili powder, ground mustard, salt, 2 ounces of sugar-free BBQ sauce, and the egg. Mix until just combined, don't overwork it!
Press your seasoned meat mixture evenly into the bottom of the prepared baking dish. Drizzle the remaining 2 ounces of sugar-free BBQ sauce over the top, then sprinkle generously with the extra 1/2 cup of shredded cheddar cheese and the chopped bacon.
Place the dish in your preheated oven and bake for 30-40 minutes. Use a meat thermometer to ensure it reaches an internal temperature of 160°F (71°C) – this keeps it juicy and safe!
Let your delicious meatloaf rest for a few minutes before slicing and serving. It tastes even better with a little patience!