Harvey Said:

Can I use California Bankruptcy to select who to pay?

We Answered:

Unfortunately, no.

When you file Ch 13 bankruptcy you are required to list ALL assets and ALL debts (just as in Ch 7). The reason for this is because one of the requirements for Ch 13 is that creditors must come out at least as well as they would have if you'd filed Ch 7. But that's getting kind of technical.

Anyway, after filing Ch 13, the court notifies ALL creditors and gives them the opportunity to file clams in your bankruptcy case. You - or your attorney - file a repayment Plan which must be confirmed by the court. The Trustee (who is really not on "your side" - the Trustee represents the interests of your creditors) can object to your repayment plan if it appears that you are not repaying your creditors what they are entitled. So far as specifying payments, all unsecured creditors are treated the same -- it is the Trustee who decides who, among those who filed claims, will get what part of what you pay into the Plan for unsecured creditors. Your Plan can contain language specifying full payment to secured creditors (mortgage, house) before unsecured creditors are paid.

PS - if you attempt to go this route, do NOT attempt to do it without the counsel of an experienced bankruptcy attorney. Writing a successful Ch 13 Plan is an art that requires a lot of knowledge of various laws, local practice, etc. It is NOT a DIY project.