Legal Question in Bankruptcy in California

Re: Property Bankruptsy

No. Federal law is very clear that you must include in your bankruptcy all debts, all assets, all income and all expenses. You absolutely cannot pick and choose what you include or don't include. To be very clear, it is a federal crime to omit any information from your bankruptcy filing, and the United States Trustee's office (a division of the Department of Justice) is very vigilant in pursuing violators. You need to speak with a bankruptcy attorney before you do anything - you could get yourself into a very large amount of trouble trying to handle this yourself.

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Re: Property Bankruptsy

If you wish to keep the house, you need to check your option re: chapter 13. chapter 13 allows you to pay regular payments commencing 30 days from the date of filing and also allow you to cure defaulted mortgage arrearages.

However, if you do not wish to keep the house, than ofcourse, you can let house be foreclosed and avoid bankruptcy by continue to pay the unsecured creditors.

You should also consider, if you could possible lower your mortgage payments under loan modification plans and discharge unsecured debts, which might allow you to keep the house.

I would definitely recommend that you contact bankruptcy attorney, to evaluate your options re: debt repayment under chapter 13 vs. chapter 7.