Can I Leave Some Debts Out of My Bankruptcy?
In a word, NO. Everyone who asks the bankruptcy court for relief makes a deal with the Court. She exchanges something for the very powerful relief offered by the Court. She agrees to bare her (his, their) financial soul to the Court, play by the Court’s rules and cooperate with the Court. In exchange, the debtor gets relief from debt and a chance to start over.
Does That Mean I Can’t Pay Any of My Creditors?
No, but… Friends and relatives shouldn’t expect you to be carving out an exception for them. If you do, the trustee can identify such an act as a “voidable preference. Let’s say you borrowed $25,000 from your parents a couple of years prior to filing your case. But as you see the handwriting on the wall, you decide to take care of mom and dad and you pay them back before filing.
This is a problem because the trustee will demand that your parents cough up the $25,000 so it can be spread pro rata among ALL.
What Does It Mean to Include All My Creditors?
It means you must list every person and institution you owe any money. You can leave out the ones which provide ongoing services, like utilities. You must list EVERYONE and EVERY INSTITUTION otherwise that you owe money.