Do you have to be in default on your loans to file bankruptcy?

Victoria Maydanik Before you file bankruptcy

No. However, be sure that you don’t favor some creditors over the others before the bankruptcy case is filed – for example, don’t send a huge payment to credit card A while credit card B gets a minimum payment. Don’t repay personal loans at the expense of other debts – any personal creditors, such as friends and relatives, have to be treated the same way as other general unsecured creditors.