Zuckerberg Bankruptcy Law Office

Every so often a blog reader poses a question that I think will be of interest to other readers.  This individual has three different loans outstanding with the same company and he/she's asking if it's possible to file bankruptcy on just one of those loans, but not on the other two.

Bankruptcy is a process that relates not to any one loan, but to an individual and to that person's overall ability or inability to repay debt.  The basic purpose of the bankruptcy legal system is, as stated by Consumer Action, "to give debt-burdened consumers an organized, systematic way of paying back creditors."

The point about paying back creditors through the bankruptcy process is that all debts need to be considered, and all creditors need to receive fair treatment, with secured creditors being first in line and then unsecured creditors. 

As part of the legal process, the court will hold a creditors' meeting.  At that meeting, you will be asked to verify each debt you owe and also to demonstrate that you have no means of immediate repayment once your basic living expenses (and those of any dependents you have) have been satisfied.

As I've said so often before in these Indiana bankruptcy blogs, bankruptcy is not a do-it-yourself project.  And, as by now you realize, it's not a pick 'n choose process, either.