Why Do I have to list all my debts if I file bankruptcy?

Yes…but let me explain why you want to list everyone.  The bankruptcy rules require you list all of your creditors so the court can get an accurate picture of your financial situation.  Listing everyone you owe does not mean you will lose your house or car or other property.  Listing everyone you owe does not mean all your debt will be wiped out.  You want to have all your creditors listed so they get notice of the bankruptcy and they leave you alone while you take the time to decide who you want to pay and who you want to get rid of.  You can always pay back the creditors you listed after the bankruptcy if you wish.

Leaving off a credit card because you want to continue to use the credit card is not a good idea and it won’t work anyway.  Credit card companies and other creditors are constantly checking your credit reports in national databases and they will find out about the bankruptcy.   They will  cancel the card anyway, whether you owe a balance or not, no matter how good your payment record may have been.

Intentionally leaving a creditor off your bankruptcy papers may result in perjury or it may make the debt non-dischargeable and you will have to pay it.   Let’s play it safe and list everyone.  That way you are protected from them and you can always pay them later if you desire.