Legal Question in Bankruptcy in California

All debts must be listed on your bankruptcy petition: there is no picking and choosing.

With regard to secured debts, you can maintain the collateral if you remain current on payments. Sometimes, you may want to reaffirm or reinstate the debt, however that is generally not recommended and should not be performed without seeking legal counsel.

Under the letter of the Bankruptcy Code, inadvertently omitted debts might not be discharged. However, in practice, such debts are effectively presumed to be discharged in a no asset (non-liquidation) bankruptcy in California. To unequivocally set the record straight vis-�-vis your creditors, you would need to file a motion to reopen the case in order to add them by amendment. To that end, consult a qualified bankruptcy attorney in your area.

With regard to liens: they are not automatically removed and cannot always be removed in bankruptcy. You must still maintain payments on your primary mortgage if you wish to keep the property. A second mortgage lien will remain unless: 1) you owe more on the first mortgage than the house is worth and 2) you file and complete a chapter 13 bankruptcy and file an appropriate avoidance motion. However, bankruptcy absolves you of personal liability on such liens.

Disclaimer: the above is not legal advice and should not be relied upon. It does not create an attorney-client relationship. Unilateral communications may be misconstrued as they do not address all facets, nuances, and particulars. This is strictly my opinion provided for general informational purposes and it pertains to California law. Seek legal and other professional counsel before acting in relation to bankruptcy. It's worth the cost.