Is it required to list personal debt obligations to individuals from borrowed money in a Personal BK filing?

It is often tempting for people to want to omit debts to friends or family members who they really want to pay back because of the special favor in making the loan in the first place.  But the purpose of bankruptcy is to spread what you have left fairly among all of the people you owe – not your favorite ones.  Generally, the people who are owed the most get a larger piece of whatever assets are available for repayment.  That element of fairness is what makes bankruptcy work.  If you  intentionally leave information out of your bankruptcy filing you can face some very stiff penalties in a bankruptcy fraud sentencing.  Punishment for bankruptcy fraud includes a maximum penalty of five years in federal prison and a fine of up to $250,000.  In addition, if the bankruptcy court learns you have been less than candid in one matter, that may cast doubt on your entire bankruptcy filing and you may not get any debts discharged at all!  Because bankruptcy is a painful  process, you are well-advised to consult an experienced bankruptcy lawyer who can help you be objective and meet the disclosure standards imposed by bankruptcy laws and the courts.