What if I don’t want to include a creditor, such as my mortgage or auto financing company?

If you are filing Chapter 7 bankruptcy, you must list all of your creditors including your mortgage and your auto finance company.  The good news is you will have the ability to continue to make voluntary payments on your mortgage and you will have the ability to reaffirm the debt on your vehicle after your bankruptcy case is filed.  The reason why you must list your house and car, even though you want to keep those items, is that the Bankruptcy Code requires that all of your assets and all of your liabilities be listed on your petition.  Simply by listing your liability does not mean you are not going to keep that liability.  In fact, you can decide to pay any creditor post filing if you would like to.  For example, some people have a physician or a dentist that they really like and despite the fact that the debt has been discharged, and despite the fact that the creditor is not seeking a payment, the debtor wants to make a voluntary payment as a goodwill gesture so they can continue to see that medical provider.  The fact that the creditor had to be listed, discharge the debt; and you can make voluntary payment if you would like.
The same applies for the mortgage.  You do not have to reaffirm on a mortgage.  You can make a voluntary payment since the Bankruptcy Code does not require that mortgages be referred.  Vehicles, however, have to be either reaffirmed, redeemed or surrendered under the Bankruptcy Code.
Now, the Reaffirmation Agreement is a separate agreement that’s going to come from the lender which basically sets out the dollar amount, the interest rate and the terms of the agreement.  If you want to keep your vehicle, you have to go back on the hook and sign up for it again through this Reaffirmation Agreement.  Your attorney will advise you of the consequences of doing such, however in most cases, the vehicle is necessary for living.  Therefore, the attorney and the court will not have a problem with you reaffirming the debt.
Just remember, everybody you owe money to, including family members, vehicles, mortgages, must be listed on your bankruptcy petition.  You have the ability to make voluntary payments or reaffirm particular debts.  Don’t make the mistake of not listing creditors as that is an absolute violation of the Bankruptcy Code.